Spotify Lifts Monthly Premium Fee to $12.99

Spotify Technology S.A. (NYSE:SPOT) is among the stocks with the best earnings growth for the next 5 years. On January 15, Spotify Technology S.A. (NYSE:SPOT) announced price hikes for premium subscriptions. Starting from billings in February, the subscription rate will rise from $11.99/month to $12.99/month.

According to CNBC, Spotify Technology S.A. (NYSE:SPOT) last raised the Premium price for U.S. users in June 2024 to $11.99 per month. As stated in the company’s announcement,

Over the next month, Premium subscribers across the U.S., Estonia, and Latvia will receive an email explaining what this update means for their subscriptions. Occasional updates to pricing across our markets reflect the value that Spotify delivers, enabling us to continue offering the best possible experience and benefit artists.

On the same day, Jefferies trimmed the price target on Spotify Technology S.A. (NYSE:SPOT) to $750 from $800 and maintained a ‘Buy’ rating. The firm keeps the company as a “Top Pick” due to projections of revenue acceleration in 2026, driven by price increases and sustained subscriber momentum. Additional upside potential stems from super-fan and other upsell initiatives. Jefferies calls the company an “undermonetized asset” with a “clean revision story,” saying that its estimates are nearly 15% ahead of consensus on 2027 free cash flow per share.

Spotify Technology S.A. (NYSE:SPOT) is a Luxembourg-Headquartered provider of audio streaming subscription services. Founded in 2006, the company operates through two segments: Premium and Ad-Supported.

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