Is SPOT Stock a Buy After Reporting Earnings? 3 Analysts Weigh In on Spotify.

richegg
2022-04-28

$Spotify Technology S.A.(SPOT)$ Spotify stock is on the move following the release of the music streaming company’s earnings report for the first quarter of 2022.

That Spotify report includes diluted earnings per share of 21 cents. That’s a massive win for the company compared to Wall Street’s estimate of -24 cents per share for the period. It’s also a positive switch from the -25 cents per share reported during the same time last year.

Another highlight from the earnings report is the company’s revenue of 2.66 billion euros. Yet again, that comes in above analysts’ estimate of 2.62 billion euros for the quarter. It also represents a 24% increase year-over-year from 2.15 billion euros.

In addition to all of this, Spotify saw monthly active users for the quarter increase by 19% year over year to 422 million. On that same note, Premium Subscribers grew 15% from the same time last year to 182 million.

Now that we have the basics, let’s check out what analysts have to say about SPOT stock today!

Is SPOT Stock a Buy?

  • JPMorgan analysts believe the earnings report was good for the company. It attributes this to many metrics coming in above guidance despite the exit from Russia. Increasing ad revenue was another highlight.
  • Wells Fargo analysts weren’t quite as cheery. They point to the company’s Q2 margin guidance as a reason for investors to worry. This saw the firm maintaining its “underweight” rating and price target of $153 per share.
  • Monness analyst Brian White weighed in on SPOT stock just before earnings. He anticipated strong ad revenue and maintained a “buy” rating with a $240 per share price target.
  • Heavy trading follows the most recent SPOT stock earnings report today. That has some 4 million shares on the move, as compared to its daily average trading volume of 2.5 million shares.
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