Spotify Technology S.A (SPOT) stock expected to decline by -8.71%: What’s driving the pessimism?

At the time of writing, Spotify Technology S.A [SPOT] stock is trading at $701.08, up 4.47%. An important factor to consider is whether the stock is rising or falling in short-term value. The SPOT shares have gain 5.59% over the last week, with a monthly amount glided 9.95%, and seem to be holding up well over a long-time horizon.

From an analyst’s perspective:

Spotify Technology S.A [NYSE: SPOT] stock has seen the most recent analyst activity on April 21, 2025, when Wolfe Research upgraded its rating to a Outperform but kept the price target unchanged to $660 for it. Previously, FBN Securities started tracking the stock with Sector Perform rating on March 28, 2025, and set its price target to $645. On March 26, 2025, China Renaissance initiated with a Buy rating and assigned a price target of $740 on the stock. Rosenblatt downgraded its rating to a Neutral. Wolfe Research downgraded its rating to Peer Perform for this stock on January 17, 2025. In a note dated November 13, 2024, Pivotal Research Group reiterated an Buy rating on this stock and boosted its target price from $510 to $565.

For the past year, the stock price of Spotify Technology S.A fluctuated between $288.07 and $678.57. Currently, Wall Street analysts expect the stock to reach $640 within the next 12 months. Spotify Technology S.A [NYSE: SPOT] shares were valued at $701.08 at the most recent close of the market. An investor can expect a potential drop of -8.71% based on the average SPOT price forecast.

Analyzing the SPOT fundamentals

According to Spotify Technology S.A [NYSE:SPOT], the company’s sales were 17.41B for trailing twelve months, which represents an 11.74% jump. Gross Profit Margin for this corporation currently stands at 0.31% with Operating Profit Margin at 0.11%, Pretax Profit Margin comes in at 0.09%, and Net Profit Margin reading is 0.07%. To continue investigating profitability, this company’s Return on Assets is posted at 0.09, Equity is 0.23 and Total Capital is 0.25. Upon thorough examination of the company’s fundamental financial framework, it becomes apparent that the debt-to-equity ratio stands at 0.34.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance.

Ratios To Look Out For

It is important to note that Spotify Technology S.A [NYSE:SPOT] has a current ratio of 1.48. On the other hand, the Quick Ratio is 1.48, and the Cash Ratio is 0.84. Considering the valuation of this stock, the price to sales ratio is 8.08, the price to book ratio is 21.30 and price to earnings (TTM) ratio is 115.56.

Transactions by insiders

Recent insider trading involved Rosello Company Limited, Director, that happened on May 21 ’25 when 1.0 million shares were purchased. Director, Lorentzon Sven Hans Martin completed a deal on May 16 ’25 to buy 11275.0 shares. Meanwhile, Director WILLIAM BARRY MCCARTHY bought 30595.0 shares on May 16 ’25.

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