Spotify stock dips after broker target cuts — what to watch before SPOT earnings

10 January 2026

New York, January 9, 2026, 18:19 EST — After-hours

Spotify (SPOT) closed Friday down 2.6%, finishing at $539.37
Guggenheim and UBS lowered their price targets but maintained Buy ratings
Spotify unveiled its new podcast studio in Los Angeles this week and projected that podcasts will add around $10 billion in value over the next five years

Shares of Spotify Technology S.A. dropped 2.6% on Friday as several brokerages cut their price targets for the music streaming company. The stock closed at $539.37, having dipped to a session low of $536.11. Over the last 52 weeks, Spotify’s shares have ranged from $451.43 to $785.00.

Target’s cuts come at a sensitive time for the story. Investors are looking for proof that Spotify can raise prices and grow ad revenue without triggering higher subscriber churn.

The company has been ramping up its focus on podcasts and video, where engagement rates are strong but expenses tend to rise. Given the stock’s lofty valuation by several metrics, even minor timing changes can shift investor sentiment.

Guggenheim cut its price target on Spotify to $750 from $800 but maintained a Buy rating, TheFly reported. The firm lowered its 2026 revenue and EBITDA forecasts, citing a delayed roll-out of a U.S. price hike.

UBS lowered its price target to $800 from $850 but kept its Buy rating, MT Newswires reported. Remember, price targets reflect analysts’ 12-month forecasts, not guarantees.

Spotify this week spotlighted the soft launch of its Sycamore Studios in Los Angeles, claiming it has helped generate around $10 billion for the podcast industry over the last five years. Jordan Newman, head of content partnerships and the Spotify Partner Program, pointed to the surge in video, pitching the site as a hub for creators and The Ringer shows.

Spotify’s shares slipped Friday, despite gains across U.S. stocks. The S&P 500 hit a record close, buoyed by chipmakers, while a weaker jobs report left Federal Reserve rate cut expectations intact for this year.

Still, the gamble on video and creator tools comes with risks: higher current spending and an uncertain timeline for returns. Any dip in ad demand or a pricing miscalculation could pressure guidance and keep the stock volatile.

Investors are focusing on guidance around pricing, advertising trends, and how quickly podcast and video engagement is growing. Spotify will release its fourth-quarter results and host an earnings call on Feb. 10, 2026.

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Khadija Saeed is a financial markets reporter at TS2.tech. Her coverage ranges from stocks and technology to emerging industries and developments across global markets. She studied economics and finance at the London School of Economics and worked in market research before becoming a financial journalist. Follow Khadija Saeed on Google News.

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