Spotify's stock surged 112% in a year, with positive growth outlook but risks ahead.

From Nasdaq: 2025-05-15 10:24:00

Spotify’s stock (SPOT) has surged 112.4% in the past year, outperforming its industry and the S&P 500. The company’s growth catalyst lies in its user base expansion, attracting and retaining millions of users globally. However, intense competition from Apple (AAPL) and Amazon (AMZN) poses a threat to Spotify’s monetization strategy.

Spotify’s promising top and bottom-line prospects show revenue and earnings growth of 17.4% and 66.1% in 2025, and 14.3% and 38.5% in 2026, respectively. While the company’s liquidity position is good, it lags behind the industry average, which could impact its performance. Spotify’s stock is currently trading at a premium valuation, raising concerns for investors.

Investors are advised to take a cautious approach with Spotify, considering its user base expansion and financial strength. The company’s growth outlook is positive, but market competition and high valuation are risks to watch. As of now, Spotify carries a Zacks Rank #3 (Hold) recommendation.



Read more at Nasdaq: Spotify Stock Skyrockets 112% in a Year: What’s Next for Investors?