Why Is Spotify Stock Slumping As Analysts Set Bullish Targets?

Bullish Spotify stock (NYSE: SPOT) targets are continuing to pour in – with analysts now predicting that shares will hit $900 apiece. But there’s a growing disconnect between their targets and SPOT’s actual value, which has slumped beneath $600.

Technically, this isn’t Spotify stock’s first sub-$600 journey of 2025; SPOT was hovering around $460 when the year started and slipped to $583 or so last month. As such, today’s market-close price, about $582, is essentially flat from November and represents a 27% spike from the top of 2025.

However, it’s also down from just over $600 at the week’s beginning and reflects a nearly 18% falloff across the past six months. Of course, broader market factors drive share-price shifts, which aren’t exactly uncommon. And on a company-specific note, factors such as Daniel Ek’s imminent exit as CEO might be contributing to SPOT’s relative slump as well.

All that said, Spotify stock’s present positioning is certainly noteworthy when considered from the perspective of analysts’ aggressive forecasts, which are still arriving amid SPOT’s descent into the $500s.

A little over one week ago, Jefferies reiterated a SPOT buy rating and confirmed a whopping $800 target, for instance. More recently, Citizens opted for an outperform rating and an identical target, compared to $775 targets for Morgan Stanley, Mizuho Securities, and Deutsche Bank alike. And a report today noted Bank of America Securities’ $900 target.

Besides marking a record high Spotify stock price, the latter implies a north of 54% upswing from the current value. That’s a sizable hike to say the least, and it ties back to an important question: Why is SPOT sagging even as analysts are setting massive targets?

Though the analysts themselves are best suited to answer, a few things jump out here. First, the runaway Spotify stock enthusiasm isn’t universal: Goldman previously downgraded SPOT, and Erste Group did the same days ago. Their underlying concerns could be factoring into the slump.

Speaking of those concerns, there are plenty of unknowns regarding Spotify’s ability to right the advert-revenue ship.

As some are aware, despite boasting a WPP deal, a huge video library, an ad exchange, an in-house marketing agency, and an ever-expanding userbase, the company posted an ad-revenue decrease for Q3 2025.

With September having delivered loosened free-tier restrictions, there’s consequently a lot riding on the platform’s fourth-quarter advertising showing – a point that could be contributing to the slump.

Furthermore, Spotify’s Q4 earnings report will be the business’s first since boosting prices in India, Saudi Arabia, Switzerland, and elsewhere. In general, Wall Street (and the majors) love pricing increases, but with Apple Music, Amazon Music, and others holding steady in this area, it’s unclear how many subscribers (or would-be subscribers) will respond by using different platforms.