WHAT'S HOT
Spotify Stock Declines 4.6% Amid Mixed Analyst Reports, Sphere Is Week’s Biggest Gainer

Published
1 year agoon

Although most music stocks gained value this week, Spotify dropped 4.6% to $302.27 despite the U.S. markets surging to record heights and two new analyst reports that indicated the company’s share price has much room for improvement.
On Wednesday (July 10), KeyBanc increased Spotify’s price target from $400 to $410 on the belief that the market is underestimating the company’s revenue, earnings and gross margin for 2025 and 2026. In addition, Wolfe Research initiated coverage of Spotify with a $390 price target. Given Spotify’s closing price of $302.27 on Friday, KeyBanc’s new price target implies 35.6% upside while Wolfe’s price target implies 29% upside.
Related
Earnings Reports Forecast: Subscription Gains, Ad Market Weakness & Taylor Swift’s…
07/12/2024
There was one Spotify dissenter this week, however. Redburn Atlantic downgraded Spotify to “sell” with a $230 price target — 23.9% below Friday’s closing price. While Redburn’s analysts are impressed with Spotify’s operating momentum, they believe the market “is simply forecasting too much growth,” they wrote in an investor note. In April, Spotify — which will release its second-quarter earnings on July 23 —said it expects second-quarter revenue to be 3.8 billion euros ($4.1 billion), which would be a 19.6% increase over the prior-year period. It also said it anticipated 245 million subscribers, up 11.4% year-over-year.
Spotify also bucked the trend among all stocks, which enjoyed a record-setting week. The Dow Jones Industrial Average and S&P 500 reached all-time highs on Friday (July 12) while the Nasdaq composite hit a new peak on Thursday (July 11). After gaining 0.2% this week, the tech-heavy Nasdaq is up 22.6% in 2024, while the S&P 500 added 0.9% and has gained 17.7% year to date.
Spotify’s fall was a major factor in the Billboard Global Music Index (BGMI) dropping 0.9% to 1,828.20 this week, though a couple of other valuable stocks also played a role even as only six of the 20 stocks lost ground this week. The index’s second-most-valuable component, Universal Music Group, declined 2.2% to 27.40 euros ($29.92) while its sixth-most-valuable component, HYBE, fell 3.9% to 189,700 won ($137.95). Despite this week’s decline, the BGMI is up 19.2% in 2024, just shy of the Nasdaq and ahead of the S&P 500.
Among stocks that saw gains this week was Warner Music Group (WMG), whose share price improved 2.0% to $30.93. On Thursday, Jefferies lowered WMG’s price target to $38 from $43, which implies 22.9% upside over Friday’s closing price. On Friday, Wolfe Research initiated coverage of WMG with a $37 price target, which implies 19.6% upside. Meanwhile, Redburn downgraded WMG from “neutral” to “sell” and has a price target of $23, 25.6% below Friday’s closing price.
Sphere Entertainment Co. led all music stocks by gaining 16.6% to $43.66, bringing its year-to-date gain to 28.4%. On Thursday, Morgan Stanley boosted its price target to $45 from $42, which implies 3.1% upside from Friday’s closing price. The company’s shares got a boost two weeks ago after hedge fund titan Steve Cohen’s Point72 Asset Management took a 5.5% stake. Sphere’s sister company, MSG Entertainment, gained 8.0% to $37.21.
!function(){“use strict”;window.addEventListener(“message”,(function(a){if(void 0!==a.data[“datawrapper-height”]){var e=document.querySelectorAll(“iframe”);for(var t in a.data[“datawrapper-height”])for(var r=0;r<e.length;r++)if(e[r].contentWindow===a.source){var i=a.data[“datawrapper-height”][t]+”px”;e[r].style.height=i}}}))}();
!function(){“use strict”;window.addEventListener(“message”,(function(a){if(void 0!==a.data[“datawrapper-height”]){var e=document.querySelectorAll(“iframe”);for(var t in a.data[“datawrapper-height”])for(var r=0;r<e.length;r++)if(e[r].contentWindow===a.source){var i=a.data[“datawrapper-height”][t]+”px”;e[r].style.height=i}}}))}();
!function(){“use strict”;window.addEventListener(“message”,(function(a){if(void 0!==a.data[“datawrapper-height”]){var e=document.querySelectorAll(“iframe”);for(var t in a.data[“datawrapper-height”])for(var r=0;r<e.length;r++)if(e[r].contentWindow===a.source){var i=a.data[“datawrapper-height”][t]+”px”;e[r].style.height=i}}}))}();
Glenn Peoples

Anycia – So Fine feat. Tink, DJ Drama (Official Music Video)

BIA – ONE THING (Official Music Video)

Exclusive interview with Hefe OG

Faith & Fire: Lorenzo Holt, Jr. is Changing the Sound of Gospel Music

‘KPop Demon Hunters’ Becomes Highest-Charting Soundtrack of 2025

Exclusive interview with Hefe OG

Faith & Fire: Lorenzo Holt, Jr. is Changing the Sound of Gospel Music

Exclusive Interview with Bassi Boss

Crucial Flamez: The Guyanese Flame Lighting Up South Florida’s Reggae-Hip Hop Scene

Exclusive interview with Strictly Sour

Anycia – So Fine feat. Tink, DJ Drama (Official Music Video)

BIA – ONE THING (Official Music Video)

Payroll Giovanni – Memory (Official Video)

Lil Bean – Do My Thizzle (Official Video)

BigXthaPlug – Home feat. Shaboozey (Official Music Video)
TRENDING


Anycia – So Fine feat. Tink, DJ Drama (Official Music Video)
Anycia – So Fine feat. Tink, DJ Drama (Official Music Video) 🔔 Subscribe to Anycia’s channel: https://bit.ly/3S7KcwR Listen to Anycia’s...


BIA – ONE THING (Official Music Video)
BIA – ONE THING (Official Music Video) “ONE THING” available at: https://Bia.lnk.to/ONETHING Follow BIA: https://www.instagram.com/bia/ https://www.facebook.com/PrincessTrilla/ Tweets by BIABIA @bia...


Exclusive interview with Hefe OG
Today we caught up with Hefe OG for an exclusive interview. What is your stage name and how did you...


Faith & Fire: Lorenzo Holt, Jr. is Changing the Sound of Gospel Music
Lorenzo Holt, Jr.: The Gospel Truth from Music City In an industry filled with personas and polished stage names, one...


‘KPop Demon Hunters’ Becomes Highest-Charting Soundtrack of 2025
The KPop Demon Hunters soundtrack surges 8-3 in its second week on the Billboard 200 albums chart (dated July 12),...