Guggenheim reiterates Buy rating on Spotify stock, sees growth beyond 2026

Investing.com - Guggenheim maintained its Buy rating and $850 price target on Spotify (NYSE:SPOT) stock, representing a potential 23% upside from the September 2 closing price of $689.62. The streaming giant has demonstrated remarkable momentum, delivering a 109.87% return over the past year. According to InvestingPro analysis, the company maintains a "GREAT" financial health score of 3.13.

The research firm expressed confidence in Spotify’s product development initiatives, including messaging features, DJ mix functionality, and Instagram song previews, alongside the company’s demonstrated pricing power in the streaming audio market.

Guggenheim projects that Spotify’s 2026 results will exceed current consensus estimates, driving sustained growth potential and further share price appreciation, based on detailed analysis of premium ARPU assumptions by market and plan.

The firm’s outlook includes a gross margin assessment factoring in non-music revenue allocations and incremental costs for audiobook and video podcast content, while also identifying under-penetrated markets and opportunities for premium-service expansion.

Guggenheim believes Spotify’s consumer positioning, collaboration with content partners, technology innovation, and an improving app-store environment collectively support a bullish investment outlook heading into the new year.

In other recent news, Spotify Technology announced its Q2 2025 earnings, which did not meet analysts’ expectations. The company reported a significant shortfall in both earnings per share and revenue, compared to the forecasts provided by analysts. These results were made public on July 29, highlighting a challenging quarter for the music streaming service. Additionally, Spotify plans to introduce a new messaging feature aimed at attracting more users to its platform. This feature will be available to both free and premium subscribers, allowing users to chat and share music with their contacts. The move is part of Spotify’s broader strategy to enhance user engagement and compete more effectively with its rivals. These developments reflect the company’s ongoing efforts to expand its user base amid competitive pressures in the streaming industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.