NEW YORK, Jan 16, 2026, 19:00 EST — Trading after the bell.
- Spotify shares fell 0.7% by Friday’s close and barely moved in after-hours trading.
- The company will raise U.S. Premium pricing beginning with February billing cycles.
- New price-target cuts are piling on the pressure ahead of the upcoming earnings report.
Shares of Spotify Technology S.A. slipped 0.7% to $504.50 on Friday and barely moved in after-hours trading, adding to a two-day decline totaling roughly 4.6% following Thursday’s 3.95% fall. The stock fluctuated between $500.82 and $511.13 during the session, with roughly 3.7 million shares traded. (StockAnalysis)
Investors are once again faced with a classic Spotify dilemma: raising subscription fees boosts revenue fast, but only if customers don’t jump ship. That “stickiness” factor is crucial, especially as streaming companies aim to prove growth is possible without the heavy spending seen in 2021.
Wall Street is recalibrating. This week, multiple analysts have cut their price targets, signaling that even the most optimistic firms are rethinking how much upside remains priced in.
Spotify announced it will adjust Premium pricing, with subscribers in the U.S., Estonia, and Latvia set to get emails over the next month detailing how their plans will change. The company said, “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.” (Spotify)
In the U.S., Spotify’s Individual Premium plan will jump to $12.99 monthly from $11.99, while the Student plan climbs to $6.99. Duo subscribers will see a rise to $18.99, and Family plans will move up to $21.99, according to a report citing Spotify’s user notification. The company described the hike as necessary “to keep delivering a great experience.” (The Verge)
Spotify has raised prices in over 150 countries without a notable jump in churn — finance chief Christian Luiga said earlier. In Q3, the company logged 281 million premium subscribers and 713 million monthly active users. It’s also ramping up efforts in podcasts, video, and audiobooks, vying for eyeballs and ad revenue against rivals like YouTube and Netflix. (Reuters)
Benchmark analyst Mark Zgutowicz stuck with a “Buy” rating on Spotify on Friday, but lowered his price target to $760 from $860, GuruFocus reports. Other firms like Bernstein and Wells Fargo have also trimmed their targets recently, though some remain optimistic with positive ratings. (GuruFocus)
Investors are focused on whether the price hikes actually boost ARPU — average revenue per user — without damaging engagement. The crucial challenge for Spotify is balancing growth in premium subscribers with increased revenue per user, instead of sacrificing one for the other.
But the downside is clear. Price increases risk boosting churn, particularly if competitors push bundles or aggressive discounts. At the same time, a slump in advertising would hit the other key revenue stream.
The timing is tricky as well. U.S. markets will be closed Monday for Martin Luther King Jr. Day, pushing traders to recalibrate in a shortened week that kicks off Tuesday. (New York Stock Exchange)
Spotify’s quarterly earnings report arrives on Feb. 10, before markets open, with a conference call set for 8:00 a.m. ET, MarketBeat reports. This will be the first substantial insight into how the new pricing strategy is performing and what management expects it means for user churn. (Marketbeat)
