Analysts Mixed on Spotify (SPOT) Heading into 2026

Photo Credit: cottonbro studio

Some analysts remain bullish on Spotify stock despite the exit of founder and CEO Daniel Ek, but others say SPOT is overvalued in the broader market.

Spotify stock (NYSE: SPOT) has indisputably tanked since founder and CEO Daniel Ek became an ex-CEO, with Goldman Sachs having downgraded the stock back in October. Now, as we prepare to head into 2026, some analysts remain bullish, including Deutsche Bank. But others, such as Erste Group, feel that SPOT is grossly overvalued relative to its peers.

DMN reported just yesterday that SPOT is down 23% since Ek confirmed his exit as the company’s CEO. But interestingly, the stock remains up by roughly the same amount from the beginning of the year, and by about 12% from this time last year.

This, coupled with Goldman Sachs’ shocking downgrade of the stock, has some analysts understandably concerned about slowing revenue growth heading into the new year. On Friday, Erste Group downgraded SPOT’s rating from “Buy” to “Hold,” citing weakening consumer confidence in the U.S. overall, which could negatively affect Spotify’s revenue growth in 2026.

The research firm also noted that SPOT’s valuation looks elevated compared to other companies in its sector based on price-to-earnings ratio metrics. However, the firm acknowledged Spotify’s steady revenue growth of nearly 12% year-to-date, despite its recent volatility.

Others remain bullish, including Deutsche Bank, which reiterated its “Buy” rating on December 1 with a $775 price target, citing potential for strong revenue and profit growth from subscription price increases expected to land in 2026. That’s a significant upside from SPOT’s current price of ~$560—but the stock has already delivered strong returns year-to-date.

The bank’s analysis suggests a “standard” $1 per month (8%) price increase could lift Spotify’s revenue by approximately 2% compared to fiscal year estimates. Spotify has already been increasing subscription prices elsewhere, and is expected to do so again in North America next year.

Spotify’s third-quarter results exceeded expectations with revenue outperforming by 1% and operating income surpassing estimates by 16%. But the company’s fourth-quarter revenue guidance fell 1% below consensus, primarily due to weaker ad-supported revenue and subscription forecasts.

The streamer’s expansion into five Asia-Pacific markets with its “Premium Platinum” tier was noted, although these markets contribute a small percentage to its subscriber base.