Spotify Technology S.A., together with its subsidiaries, provides audio streaming services worldwide. It operates through two segments, Premium and Ad-Supported. The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers. The Ad-Supported segment provides on-demand online access to its catalog of music and unlimited online access to the catalog of podcasts to its subscribers on their computers, tablets, and compatible mobile devices. The company also offers sales, distribution and marketing, contract research and development, and customer support services. Spotify Technology S.A. was incorporated in 2006 and is based in Luxembourg, Luxembourg.

Spotify Technology S.A.

Below is Validea's guru fundamental report for SPOTIFY TECHNOLOGY SA (SPOT). Of the 22 guru strategies we follow, SPOT rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. This momentum model looks for stocks with strong and consistent intermediate-term relative performance.
SPOTIFY TECHNOLOGY SA (SPOT) is a large-cap growth stock in the Business Services industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
TWELVE MINUS ONE MOMENTUM:
PASS
SEASONALITY
NEUTRAL
Detailed Analysis of SPOTIFY TECHNOLOGY SA
More Information on Wesley Gray
About Wesley Gray: Wesley Gray is the founder of Alpha Architect and the author (along with co-author Jack Vogel) of "Quantitative Momentum A Practitioner's Guide to Building a Momentum-Based Stock Selection System". He is also the author (along with co-author Tobias Carlisle) of "Quantitative Value: A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors". He is an industry recognized expert in the application of quantitative investing strategies. Wes is also a former Marine and has his Phd from the Univerisity of Chicago, where he studied under Nobel Prize winner Eugene Fama.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea Detailed Fundamental Analysis - SPOT

Below is Validea's guru fundamental report for SPOTIFY TECHNOLOGY SA (SPOT). Of the 22 guru strategies we follow, SPOT rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. This momentum model looks for stocks with strong and consistent intermediate-term relative performance.
SPOTIFY TECHNOLOGY SA (SPOT) is a large-cap growth stock in the Business Services industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of SPOTIFY TECHNOLOGY SA
More Information on Wesley Gray
About Wesley Gray: Wesley Gray is the founder of Alpha Architect and the author (along with co-author Jack Vogel) of "Quantitative Momentum A Practitioner's Guide to Building a Momentum-Based Stock Selection System". He is also the author (along with co-author Tobias Carlisle) of "Quantitative Value: A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors". He is an industry recognized expert in the application of quantitative investing strategies. Wes is also a former Marine and has his Phd from the Univerisity of Chicago, where he studied under Nobel Prize winner Eugene Fama.
Additional Research Links
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Guru Fundamental Report for SPOT

Key Points
Over the last five years, Spotify stock has increased in value by nearly 200%.
Spotify's management gives me confidence that the company will continue to deliver solid revenue growth and profits.
It's impossible to know the future. However, by closely examining a company's fundamentals, its business model, and its management team, it is possible to make an educated prediction about how a stock might perform.
With that in mind, let's take a closer look at Spotify Technology (NYSE: SPOT) and try to figure out where the stock might be five years from now.
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How Spotify stock performed over the last five years
To start, let's get a handle on how Spotify stock has performed. Since August 2020, five years ago, the company's stock has increased by 192%. That works out to a compound annual growth rate (CAGR) of 24%. It also compares favorably to the benchmark index, the S&P 500, which has increased by 91% over the same period, with a CAGR of 14%.
There are two big reasons for this excellent performance.
First, Spotify is a major beneficiary of the streaming revolution. Thanks to the ubiquitous nature of smartphones and the nearly global availability of broadband internet, people around the world have switched to streaming to hear their favorite music. Consequently, the company now boasts nearly 700 million daily average users (DAUs) and more than 276 million subscribers.
The second reason Spotify enjoyed stock market success is due to sound management and cost control. Up until 2024, Spotify struggled to turn a profit. However, after several rounds of cost cuts and price hikes, Spotify generated over $860 million in net income over the last 12 months. That's despite reporting a small loss in its most recent quarter, which CEO Daniel Ek blamed on "an execution challenge."
How Spotify is executing right now
Clearly, one unprofitable quarter isn't that meaningful when trying to evaluate how a company and its stock will perform over a period of five years. That said, Spotify's recent earnings miss raises questions about how profitable the company will be going forward.
However, this is where trust in management comes into play. Ek has shown the ability to make tough decisions and to rein in spending before. He's made cuts to the company's podcast division every year since 2023, trimming back a consistently unprofitable niche for the company. At the same time, Spotify increased subscription prices while still growing its overall subscriber base.
While these trends could end, I feel confident that Ek will continue to tighten the belt when and where necessary. That should result in Spotify returning to consistent profitability soon -- and remaining profitable thereafter.
Where Spotify stock could be in five years
So, if Spotify can continue to grow its key metrics at a similar rate, where would that leave its stock five years from now?
I believe that Spotify can maintain its current growth for at least five years. Therefore, let's take its last five years as a basic guide.
The company's stock generated a CAGR of 24% over those five years, and, to be conservative, let's assume a CAGR of 18% for the next five years.
If that were to occur, Spotify stock would increase by about 129% over the next five years, bringing its price (assuming no stock splits) to roughly $1,670.
Now, obviously, this is a prediction, and Spotify might not live up to it. There are risks, such as higher costs, slower growth, greater competition, or regulation, all of which could negatively affect Spotify and its stock price.
However, right now, I remain bullish on Spotify, and I believe that investors seeking a solid growth stock would be wise to consider it.
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Jake Lerch has positions in Spotify Technology. The Motley Fool has positions in and recommends Spotify Technology. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Where Will Spotify Technology Stock Be in 5 Years?

SPOT Quantitative Stock Analysis

SPOT Factor-Based Stock Analysis

Spotify Technology S.A. SPOT shares have surged 105.9% in a year, surpassing the 44.9% rally of its industry and the 18.3% rise in the Zacks S&P 500 Composite.
The SPOT stock has outperformed its competitors, Apple AAPL and Amazon AMZN. Apple and Amazon have gained 2.6% and 30%, respectively.
1-Year Price Performance
Image Source: Zacks Investment Research
Spotify’s growth over the past year is appealing to investors. However, the question is whether investors should ride the tide or stay away from it. Let us delve deeper and find out.
SPOT’s Robust User Engagement
Spotify’s monthly active users (MAUs) in the second quarter of 2025 increased 11% year over year to 696 million. Premium subscribers registered 12% year-over-year growth in the said quarter. Successful marketing campaigns in developing markets, a favorable shift in competitor dynamics, and robust global promotional campaign intake drove this user growth.
Management is optimistic about user growth and anticipates the total MAUs to increase by 14 million in the third quarter of 2025. It expects to add 5 million users as premium subscribers in the same quarter. This optimistic outlook translates into strong user appeal and retention in the long run, an important trait required to tackle major industry players.
Spotify Struggling Over Ad-Monetization
SPOT’s ability to enhance ad monetization weighs on its performance. CEO Daniel Ek stated that this is not a strategic problem, but an execution one. Spotify’s decision to wash off exclusivity from certain podcasts and change its Partner Program model lowered available ad inventory. These changes had short-term negative impacts on ad revenues, which are acknowledged by the company’s chief business officer, Alex Norström.
Lee Brown, the global head of advertising sales, exited the company recently. Norström stated that the management was dissatisfied with the progress made, and a change in leadership was inevitable. Although the monetization strategy is robust, the company is unable to execute it efficiently, and the recent change in leadership is a direct response to this setback.
SPOT Faces Stiff Competition
Despite Spotify’s shares performing way better than Apple's and Amazon's over the past year, there is no denying the fact that these two giants pose a significant threat to Spotify’s music streaming business.
Per Digital Music News, Spotify leads the market with 36% of paid audience in the United States as of 2024. Apple Music and Amazon Music’s shares account for 30.7% and 23.8%, respectively. This goes to show that Spotify faces significant challenges from tech giants, prompting it to invest to gain an edge, which affects its ability to balance growth and profitability.
Investors may put their bets on SPOT’s superior recommendation algorithms. However, they must acknowledge Apple Music’s lossless and spatial audio and Amazon Music’s Prime Subscription.
Spotify Stock Looks Pricey
SPOT is priced at 72.39 times forward 12-month earnings per share, which is higher than the industry’s average of 24.65 times. When looking at the trailing 12-month EV-to-EBITDA ratio, Spotify is trading at 61.82 times, far exceeding the industry’s average of 35.95 times. Metrics as such, signal valuation concerns for investors, which can limit their willingness to invest in Spotify.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
SPOT’s Bleak Bottom-Line Prospects
The Zacks Consensus Estimate for earnings per share is set at $5.73, a decline of 3.7% from the year-ago quarter. Furthermore, seven estimates for 2025 have moved south in the past 30 days and 60 days, versus no northward revision. This reflects a lack of analyst confidence.
Spotify Unfavorable for Income-Seeking Investors
SPOT does not pay any dividends and shows no plan to pay the same in the future. Reluctance to pay dividends demotivates income-seeking investors as the means of generating return is vested in stock appreciation, which is not a guaranteed phenomenon, evidenced by the 4% decline in SPOT shares in the past month.
Exiting Your SPOT Seems the Best Option
Spotify witnessed significant growth in its MAUs and premium subscribers, driving its top line in the second quarter of 2025. However, the inability to effectively monetize ads threatens its revenue streams. Competition in the audio streaming market is intensifying daily, with Apple and Amazon eager to gain market share.
Spotify’s high valuation raises concerns for investors. Weak earnings prospects and declining analyst confidence are worrisome, while SPOT’s reluctance to pay dividends does not attract income-focused investors.
Although the stock has surged over the past year, a 4% decline in the last month indicates a correction phase. Considering these negatives, we suggest long-term investors holding SPOT consider selling now, and potential investors are advised to refrain from investing at this time.
Spotify carries a Zacks Rank #4 (Sell) at present.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SPOT Skyrockets 106% in a Year: How Should You Play the Stock?

Key Points
Warren Buffett is widely viewed as a value investor.
One of Berkshire's core positions has been struggling for over a decade.
Conversely, Berkshire continues to purchase a stock down about 65% over the last five years.
Every quarter, investors eagerly wait for Berkshire Hathaway, the company run by Warren Buffett, to report changes in its massive stock portfolio. Investors are always interested to see what the greatest investor of all time and his team are buying and selling.
While Berkshire will report its 13F filing next week, detailing Berkshire's holdings at the end of the second quarter, investors already know some of the changes the large conglomerate made thanks to the company's earnings report and other filings. Berkshire recently took a multi-billion-dollar writedown on one of its longtime holdings and continued to pile into another deep value stock with a more than 5% dividend yield, as of this writing.
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Preparing to sell a longtime underperformer
Buffett first got interested in the condiment and food company Kraft Heinz (NASDAQ: KHC) in 2013. Buffett and Berkshire teamed up with the private equity firm 3G to purchase Heinz for more than $23 billion. Two years later, the two companies once again worked together to merge Heinz with Kraft and form the Kraft Heinz known today. The investment has been a disaster.
It's widely viewed as one of Buffett's biggest mistakes. Kraft Heinz has been dogged by high debt and weak growth, as people opt for healthier options. With Buffett planning to step down as CEO of Berkshire later this year, the company looks like it's gearing up to potentially sell its position in Kraft Heinz, although it hadn't done so as of this writing.
Earlier this year, Berkshire's representatives on Kraft Heinz's board of directors announced they would leave the board. Kraft Heinz is exploring strategic alternatives, including a break-up of the company that could spin off the grocery business and focus on the faster-growing condiments division.
In the second quarter, Berkshire marked down its position in Kraft Heinz by nearly $5 billion, or $3.8 billion after tax. The company is a top 10 stock in Berkshire's portfolio, and Berkshire owns 27.5% of outstanding shares. Berkshire said in its Q2 regulatory filing that "we considered our ability and intent to hold the investment (Kraft Heinz) until the fair value exceeds carrying value, the magnitude and duration of the decline in fair value, and the operating results and financial condition of the company."
Berkshire also attributed the mark down to the fact that it no longer has board members, which limits the timing and extent of financial information Berkshire can get from Kraft Heinz, beyond what's made public. It certainly seems like Berkshire is planning to unwind its position, although that could take time, given how large it is.
Loading up on this deep value turnaround story
While Berkshire looks to be preparing to exit one turnaround play, it is loading up on another. Regulatory filings showed that Berkshire continued to add to its position in Sirius XM (NASDAQ: SIRI), purchasing more than $100 million of the stock recently. That brings Berkshire's position in Sirius to $2.6 billion, or roughly 37% of outstanding shares.
Although Buffett has likely given the green light on the position, Sirius is a position believed to be managed by one of Berkshire's top investing lieutenants, Ted Weschler. The stock has also been a disaster and is down roughly 65% over the last five years. Sirius is the owner of Sirius Satellite Radio and the Pandora music streaming service.
Sirius is the only company in the U.S. that holds a license from the U.S. Federal Communications Commission allowing it to operate a satellite radio business and use the radio spectrum. This should give Sirius a monopoly. However, the license has done little to prevent competitors like Spotify from encroaching on its business.
Sirius does have a plan to rejuvenate subscriber growth. The company has purchased the exclusive advertising and distribution rights to many big-name podcasts, and plans to scale its advertising business.
Additionally, Sirius XM has updated its technology platform and tried to streamline its pricing and subscription plans. The long-term financial goal is to add 10 million subscribers and grow total subscribers to 50 million, while increasing free cash flow by about 50% to $1.8 billion.
While recent quarters have shown some progress, it's still too minimal to really convince investors that the turnaround is working. That said, the company's subscriber base is mostly in the U.S., making the company fairly immune to tariffs. Additionally, Sirius' dividend yield is more than 5% right now, so investors will be compensated for their time. The dividend also looks easily sustainable, given Sirius' trailing 12-month free cash flow yield of close to 14.5%.
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Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway and Spotify Technology. The Motley Fool recommends Kraft Heinz. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Warren Buffett Just Took a Multi-Billion-Dollar Writedown on One of Berkshire Hathaway's Longtime Holdings and Is Now Piling Into a Deep Value Opportunity With a 5% Yield

Spotify Technology S.A.

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