Spotify Technology stock has been climbing ahead of the streaming music giant's first-quarter report due next Tuesday as investors expect melodious news.
Wall Street is predicting Spotify added about 2 million premium subscribers, ending Q1 with 265 million worldwide. Also, monthly active users are seen increasing by 4 million to 679 million. That number includes ad-supported free users.
Analysts polled by FactSet expect Spotify to earn $2.49 a share, up 139% year over year, on sales of $4.78 billion, up 23%.
On the stock market today, Spotify stock ended the regular session up 2.4% to 620.72. In intraday trading, it hit a buy point of 621.20 from a double-bottom base, according to IBD MarketSurge charts. It climbed as high as 624.09 before pulling back.
On Friday, Deutsche Bank analyst Benjamin Black reiterated his buy rating on Spotify stock with a price target of 700.
"We continue to favor Spotify as one of our top ideas in 2025, particularly in the current uncertain macro and tariff environment," Black said in a client note.
Growth catalysts for the company include a rumored higher-priced "supremium" service tier and new advertising initiatives.
The possibility of increased shareholder returns, through buybacks, could further lift Spotify stock, Black said.
Also Friday, Jefferies analyst James Heaney maintained his buy rating on Spotify stock with a price target of 730. He called Spotify "one of the best houses in a tough neighborhood."
"Investor sentiment on SPOT remains the most positive in our coverage, as investors view limited tariff exposure and music's resilience as sources of defensibility," Heaney said in a report.
Spotify stock is on two IBD lists: Leaderboard and Tech Leaders.
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