Spotify (SPOT) Price Target Raised to $675 Amid Strong Q3 Performance

Spotify Technology S.A. (NYSE:SPOT) is one of the must-buy US stocks to buy now. On November 5, Cantor Fitzgerald increased its price target on Spotify Technology S.A. (NYSE:SPOT) from $640 to $675, maintaining a Neutral rating. The revision followed Spotify’s Q3 2025 results, which beat expectations with €4.3 billion in revenue, 1% above consensus, and €582 million in operating income, outperforming by 16%. Subscriber count rose 12% year-over-year to 281 million, while Monthly Active Users reached 713 million, up 11%.

Spotify’s gross margin improved to 31.6%, exceeding guidance by 50 basis points due to favorable rights holder accruals. For Q4, the company guided revenue of €4.5 billion, slightly below the €4.6 billion Street estimate, and expects its gross margin to reach 31.9%, marking a 70-basis-point year-over-year increase. Over the past twelve months, Spotify has maintained steady growth, with annual revenue nearing $19.8 billion and a gross profit margin of 31.85%.

Cantor Fitzgerald highlighted Spotify’s growing traction in podcasts and audiobooks, along with its integration of AI features. The firm sees potential for price increases across several markets, supporting margin expansion over the next two to three years. While FY26 revenue estimates were trimmed by 1%, EBIT projections rose 7%, with the new target based on a blended 35x multiple of FY26/27 EBIT.

Spotify Technology SA (NYSE:SPOT) operates as a leading global audio streaming platform. As the top player in the music streaming industry by market share, Spotify earns revenue through a mix of paid subscriptions, advertising, and strategic partnerships.

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Disclosure: None. This article is originally published at Insider Monkey.