Spotify stock has jumped 18% in 3 months, but is currently overvalued, so hold for now.

From Zacks Investment Research: 2025-04-16 14:58:00

Spotify (SPOT) shares have gained 18% in the last three months, outperforming competitors like Apple, Amazon, and Alphabet. The company’s growth drivers include high-quality content, price hikes, and strong returns on capital. Despite a strong liquidity position, Spotify’s stock is currently overvalued, trading at 52.2 times forward earnings per share. Investors are advised to wait for the right entry point, given the competitive landscape and inflated valuation. Spotify’s long-term success hinges on sustained growth and a potential pullback in valuation. The stock currently holds a Zacks Rank #3 (Hold).



Read more at Zacks Investment Research: Spotify Stock Soars 18% in 3 Months: Should You Buy, Hold or Sell? – April 16, 2025