New York, January 13, 2026, 19:40 EST — After-hours
- Spotify shares ended the day 0.9% higher and saw minimal movement in after-hours trading
- Wells Fargo lowered its price target to $710 from $750 but maintained its Overweight rating
- Attention turns to the Feb. 10 results, especially any hints about U.S. subscription pricing and margins for 2026
Shares of Spotify Technology S.A. (SPOT) ended Tuesday up 0.9%, closing at $534.64, and ticked slightly higher to $535.03 in after-hours trading. Despite this modest gain, the stock remains roughly 10% below its close on January 5, following a turbulent start to 2026. (StockAnalysis)
This matters because Spotify’s next move up depends less on adding new users and more on boosting prices and profit margins. Investors are weighing how far the company can raise subscription fees before listeners start canceling or downgrading their plans.
Wells Fargo’s newest note laid out the challenges clearly. Analyst Steven Cahall lowered his price target to $710 from $750 but stuck with an Overweight rating — a bullish signal suggesting he expects the stock to outperform its peers. He noted that “a U.S. price increase plus more bullish commentary on the 2026 margin outlook could kickstart the shares.” (TipRanks)
Price targets reflect brokers’ predictions of where a stock might head over time, not guarantees. Yet, they often influence sentiment before earnings, as even slight tweaks in guidance can quickly impact valuations.
Spotify’s ability to push prices higher gained fresh attention after a Financial Times story in November revealed plans to hike U.S. subscription fees in Q1 2026, Reuters reported. In its latest earnings call, CEO Daniel Ek told Reuters, “We think that there’s still a lot of room left for us to grow in our core business.” (Reuters)
Spotify has pushed into podcasts, video, and audiobooks alongside its main music subscriptions, while also generating revenue through advertising. It now competes fiercely with Apple and Amazon in the streaming audio space.
Spotify plans to release its fourth-quarter 2025 results and shareholder presentation on Feb. 10, ahead of the U.S. market open. A Q&A session is set for 8 a.m. Eastern time that day. (Business Wire)
Traders will zero in on any updates about subscriber growth, churn rates, and average revenue per user. They’ll also look closely at whether management pushes a clearer margin outlook for 2026 or pulls back on their guidance.
The downside is straightforward to outline. If a price hike backfires, early signs could show up as slower net adds or rising churn. Ad demand might falter quickly if marketers pull back. This combination would squeeze margin targets right when expectations are being adjusted.
SPOT’s next major event is Feb. 10. Confirmation on U.S. pricing ahead of that date, or fresh analyst target revisions, might shape how the stock moves leading up to the report.
