Argus Research has initiated coverage on Spotify Technology SA (SPOT) with a Buy rating, marking the firm's first assessment of the company's investment potential. This evaluation is based on a detailed analysis of Spotify's business model, industry dynamics, and growth prospects.
Spotify operates in the media industry, providing digital music services that allow users to discover new releases and create personalized playlists. The company offers two service tiers: Spotify Free, which includes shuffle play, and Spotify Premium, which features an ad-free experience and additional functionalities. With a market capitalization of $119.7 billion, Spotify's P/E ratio stands at 73.92, and its trailing twelve-month EPS is 6.61.
Upcoming earnings reports are scheduled for April 21, 2026, and February 4, 2026, with estimated EPS of $2.70 and $2.67, respectively. The recent earnings performance has shown volatility, highlighted by a significant Q3 2025 EPS surprise of $3.28 compared to an estimate of $2.01.
Analyst ratings like Argus's provide insights into market sentiment, but they are based on assumptions that may not always align with actual outcomes. Investors should consider a range of factors, including company fundamentals and industry trends, when making decisions. Analyst ratings can evolve as new data emerges, reflecting the dynamic nature of market analysis.