New York, Jan 26, 2026, 13:46 (EST) — Regular session
- Spotify shares edged slightly, staying close to $513 in afternoon trading.
- Attention now turns to Spotify’s earnings on Feb. 10 and the upcoming U.S. Premium price hike set for February.
- The most recent clear catalyst came late last week with a Goldman Sachs upgrade.
Spotify Technology S.A. (NYSE: SPOT) shares edged down roughly 0.1% to $512.8 Monday afternoon, fluctuating between $510.11 and $518.90 during the day.
Wall Street edged up as trading slowed down before a busy week loaded with mega-cap tech earnings and the Federal Reserve’s rate announcement. Chris Larkin of E*Trade at Morgan Stanley noted that earnings “should shape sentiment around the AI trade,” while the Fed decision remains front and center. (Reuters)
Spotify’s next big moment comes with its Q4 earnings report on Feb. 10, set for release before markets open. Investors will be focused on subscriber growth trends, ad revenue, and the company’s outlook for 2026. (Nasdaq)
Goldman Sachs bumped Spotify up to a “Buy” rating from “Hold” late last week, though it lowered the price target to $700. Analyst Eric Sheridan pointed to potential gains of 80 to 100 basis points in annual gross margin. Still, he cautioned it’s “too early to tell” how AI could change the music streaming landscape. (Barron’s)
Spotify shares climbed 2.92% in the previous session, closing at $513.21, recovering after several days of declines. (Finviz)
The company also offered investors a near-term pricing trigger. Earlier this month, Spotify announced it will raise its monthly Premium plan by $1 to $12.99 in the United States, Estonia, and Latvia beginning in February. (Reuters)
That’s crucial since music streaming relies on volume: royalties and other direct expenses scale with listening hours. If the February price hike holds steady without triggering a surge in cancellations — churn, as the industry calls it — it could help preserve gross margin, the portion of revenue remaining after covering content and direct costs.
Ads form another key lever. Spotify sells ads on its free music tier and podcasts, but this revenue stream can fluctuate with the broader economy. A weaker ad market could curb the operational improvements translating into profits.
Pricing power faces steady pressure from competition. Apple, Amazon, and Alphabet’s YouTube compete for the same paying listeners, frequently offering bundles linked to hardware or wider subscription services. That leaves Spotify depending on personalization and fresh formats to hold onto user engagement.
Still, the setup isn’t without its risks. If churn spikes more than expected following February’s price shift, or if the company issues cautious remarks on advertising, the stock could take a hit. It’s priced like a growth stock, after all, and remains sensitive to shifts in rates and risk appetite.
Spotify is set to deliver its next major update on Feb. 10, revealing earnings and a 2026 forecast. (MarketBeat)
