By Angela Palumbo

Spotify Technology stock has been soaring, and some Wall Street analysts expect the shares to hit even more records.

The S&P 500 has eked out a gain of 1.7% this year as investors worry over tariffs and the war between Israel and Iran. But shares of the music-streaming platform have jumped 31%, for a gain of 133% over the past 12 months.

Investors have been excited about the company's growth. Spotify recorded its first full-year profit in 2024 as price increases and layoffs helped its margins. In April, the company reported a larger than expected increase in its base of premium subscribers for its first quarter, while the number of monthly active users grew in line with analysts' estimates.

While shares did drop 3.5% after the April 29 earnings report -- investors were disappointed with management's forecast of the number of active users for the second quarter -- the stock has bounced back since then. Shares rose 0.8% on Tuesday to $721.42, putting the stock in position for a record closing high, according to Dow Jones Market Data.

Pivotal Research Group analyst Jeffrey Wlodarczak expects the stock will go even higher. On Tuesday, he raised his price target on Spotify to $900, the highest on the Street, from $800. That implies a 26% increase from the closing price of $715.37 on Monday.

"The company has won the global audio streaming wars (driven mainly by their best-in-class user interface & recommendation engine) and audio streaming still appears underpenetrated globally allowing them to take price and still generate solid subscriber growth, a powerful combination, " Wlodarczak wrote in a research note. He rates Spotify as a Buy.

Wlodarczak isn't alone. Of the 40 analysts surveyed by FactSet, 25 say the stock is a Buy, 11 rate it at Hold, and four say it is a Sell.

"Spotify is the U.S. and UK Streaming leader in terms of users, and its leadership position is widening, with the service enjoying intrinsically very high user satisfaction, less price sensitivity than any competitor despite its recent price hike, and an increasingly strong attach rate with Podcasts and now Audiobooks," Evercore ISI analyst Mark Mahaney wrote in a note on June 13.

He raised his price target for Spotify stock to $750 from $650 while maintaining an Outperform rating.

Write to Angela Palumbo at angela.palumbo@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

June 17, 2025 15:06 ET (19:06 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.