Spotify has raised U.S. Premium subscription prices to $12.99 starting February 2026, aiming to boost revenue and profitability. Shares dropped 4% post-announcement. The company faced criticism from artists over CEO Daniel Ek’s defense tech investment. Despite this, Spotify remains a major player in the global streaming industry with a $103.9 billion market cap.

After a flat period post-IPO, Spotify surged in 2024 and 2025, reporting full-year profitability in 2024. However, the stock fell 34.8% from its June 2025 peak. Investors grew cautious about future growth, reflected in a modest 3.52% gain in early 2026. Analysts forecast EPS to rise to $7.70 in 2025 and $13.46 in 2026.

Spotify’s Q3 2025 results showed a 7% revenue increase, with 713 million MAUs and 281 million premium subscribers. Operating income rose 28%, gross margin expanded, and the company posted a net profit of €899 million. Spotify plans to reach 745 million MAUs and 289 million premium subscribers in Q4 2025.

UBS and Deutsche Bank maintain “Buy” ratings on Spotify post-price hike announcement. Benchmark lowered its price target but kept a “Buy” rating. Analyst consensus is a “Moderate Buy,” with an average price target of $746.48, indicating a 46% potential upside. The stock could rally as much as 76% to reach $900.

Read more at Yahoo Finance: Spotify Just Raised U.S. Prices. How Should You Play SPOT Stock in January 2026?