New York, Jan 16, 2026, 14:17 EST — Regular session
- Spotify shares slipped roughly 0.5% in afternoon trading, hovering close to $505.
- The company raised U.S. Premium prices once more, effective from customers’ February billing dates.
- Traders are scouring for early cancellation signals and gearing up for the next earnings report due in February.
Shares of Spotify Technology S.A. fell Friday after investors weighed the impact of the company’s recent U.S. subscription price hikes on future growth. The stock dropped 0.5%, trading at $505.47 in afternoon session.
This shift is significant since Spotify’s most straightforward tool at the moment is raising prices. As long as users don’t leave, boosting monthly fees can push up the average revenue per user — a key measure of what each subscriber contributes.
But price hikes cut both ways. While they boost revenue, they can also ramp up “churn” — the industry’s term for cancellations — and that’s what traders will be watching closely in the weeks ahead.
Spotify announced Thursday it will boost the monthly fee for its Premium plan by $1, pushing the price to $12.99 in the U.S., Estonia, and Latvia. This change kicks in starting with customers’ billing cycles in February. The company has relied on price hikes over the past few years and noted it didn’t see a significant rise in cancellations after doing so across more than 150 countries. In the third quarter, Spotify reported 281 million Premium subscribers and 713 million monthly active users. (Reuters)
Spotify is raising prices on other U.S. Premium plans, including Duo, Family, and Student tiers, the company confirmed in a blog post reported by TechCrunch. “Occasional updates to pricing across our markets reflect the value that Spotify delivers, enabling us to continue offering the best possible experience and benefit artists,” it said. (TechCrunch)
After the stock’s steep drop from last year’s peak, analysts have adjusted their outlooks. Barron’s noted that Oppenheimer’s Jason Helfstein and Bernstein’s Ian Moore both cut their price targets but held on to “Outperform” ratings. They cited slower revenue growth and emphasized the need for a more obvious rebound. (Barron’s)
Certain analysts remain optimistic if cancellations remain limited. Evercore ISI’s Mark Mahaney projects the price increase could boost Spotify’s sales by 4% to 5%, adding roughly $270 million to gross profit, as detailed in a GuruFocus report. (GuruFocus)
That said, risks remain. If consumer spending tightens or rivals in music and video step up their game, Spotify might struggle to raise prices without shedding subscribers—particularly in its most established markets.
Traders are zeroing in on early indicators: app engagement levels, any move toward the free ad-supported tier, and if the market begins factoring in improved margins instead of focusing solely on revenue growth.
Spotify’s fourth-quarter earnings call is set for Tuesday, Feb. 10, 2026, starting at 8:00 a.m. Eastern Time. (Webinar)
