Spotify stock

Spotify stock has cracked $400 per share for the first time, and all eyes are now on the business’s upcoming Q3 2024 earnings report.

Spotify shares (NYSE: SPOT) have officially cracked a record high of over $400 apiece. Now, days out from a much-anticipated Q3 earnings report, will the stock rise even higher?

A number of analysts seem to think so, with several decidedly bullish target prices having been disclosed in the past week or so alone. The last time Spotify stock neared the elusive $400-per-share price point (and saw target prices predicting continued growth yet) was way back in early 2021, amid a Joe Rogan Experience-fueled valuation surge.

However, for reasons including profitability woes and broader market trends, SPOT not only failed to jump past $400 at the time, but proceeded to embark on a downward spiral that ultimately brought it to the low-$70s the following year. Shares then rode gradual momentum through the $100s during 2023, amid the beginning of an aggressive focus on operational efficiency.

Stated differently, Spotify ceased dropping cash on all manner of companies and content, instead prioritizing profitability. Having brought on a new CFO earlier in 2024, CEO Daniel Ek is adamant that this focus on remaining in the black is here to stay.

Among other things, the retooled approach means there’s more than ever riding on quarterly subscription figures and profit margins – a point worth keeping in mind as Spotify prepares to post its Q3 financials next Tuesday, November 12th.

With all that said, many maintain that SPOT’s best days are ahead. That includes The Motley Fool analyst Travis Hoium, who believes Spotify will “beat the market over the next five years” and could have “10x potential” moving forward.

“With the help of advertisements, growth in podcasts, growth in video, I think Spotify could grow revenue double digits and expand margins over the next decade,” Hoium said.

Meanwhile, Morgan Stanley has set a $430 SPOT target price, while Deutsche Bank yesterday opted for a $440-per-share target due to anticipated subscriber gains, expansions in audiobooks and more, and the perceived potential for price increases in emerging markets.

Lastly, Rosenblatt Securities recently settled on a $438 Spotify stock target, and KeyBanc Capital Markets, not stopping there, decided on an astonishing $490 SPOT target.

Of course, time will tell whether the forecasts prove accurate – with quite a lot riding on Spotify’s Q3 earnings as mentioned above. Already, though, Spotify’s market cap has surpassed a whopping $80 billion or so; shares were hovering around the $400 mark at the time of writing. At the current dollar-euro exchange rate, that’s approximately $34 billion larger than the market cap of today’s biggest music company, Universal Music Group.