Spotify Stock Soars 124% in a Year: Time to Buy, Hold or Fold?
From Nasdaq: 2025-06-11 10:33:00
Spotify’s stock (SPOT) has surged 123.7% in a year, outperforming industry peers and the S&P 500. It also outperformed Apple (AAPL) and Amazon (AMZN) in the same period.
Spotify’s user engagement is strong, with monthly active users growing 10% year over year. Management expects further growth, aiming for a billion users globally by 2030.
Despite promising revenue and earnings growth, Spotify lags in liquidity and profitability compared to the industry average. Valuation metrics suggest the stock may be pricey.
Our verdict: Hold Spotify for now due to its user base expansion and growth prospects, but be cautious due to valuation concerns. Consider increasing exposure after signs of lasting growth and a more attractive valuation appear.
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