Spotify: Analysts Opinions: Difference between revisions

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 Return to [[Spotify]]
-=== The 17% layoff could foretell a slowdown in revenue growth ===
+=== December 2023 ===
+December 21, 2023: Hold->Buy, $170->$265: Pivotal Research believes that Spotify's renewed focus on financial discipline will drive higher medium-to-long-term EBITDA and free cash flow and that it appears Spotify can hike prices without significant churn. It "appears that Spotify has won the digital audio streaming content war," the analyst pointed out<ref>https://thefly.com/landingPageNews.php?id=3834459&headline=SPOT-Spotify-just-upgraded-at-Pivotal-Research-heres-why&utm_source=https://thefly.com/news.php%3fsymbol=SPOT&utm_medium=referral&utm_campaign=referral_traffic</ref>.
-* Neutral->Buy, $150->$300: Rosenblatt analyst thinks (Dec 12, 2023) the recent layoff can be seen as both scary and promising.  Scary in the sense that it could predict a surprising slowdown in revenue growth and promising in that it could lead to a margin explosion.  The analysts chose to go with the explosion<ref>https://seekingalpha.com/news/4045034-spotify-gets-upgrade-at-rosenblatt-on-promising-scenario-after-restructuring-efforts</ref>.
+December 12, 2023: Neutral->Buy, $150->$300: Rosenblatt analyst thinks the recent layoff can be seen as both scary and promising.  Scary in the sense that it could predict a surprising slowdown in revenue growth and promising in that it could lead to a margin explosion.  The analysts chose to go with the explosion<ref>https://seekingalpha.com/news/4045034-spotify-gets-upgrade-at-rosenblatt-on-promising-scenario-after-restructuring-efforts</ref>.
-=== Analysts welcomed the cost cuts saying the layoff was probably the last ===
+December 8, 2023: Overweight, $186->$216: Barclays thinks the cost cuts announced this week will likely make its margin expansion goals more credible though its operating leverage is “a bit unusual.”<ref>https://thefly.com/landingPageNews.php?id=3827958&headline=SPOT-Spotify-price-target-raised-by--at-Barclays-heres-why&utm_source=https://thefly.com/news.php%3fsymbol=SPOT&x=20&y=17&utm_medium=referral&utm_campaign=referral_traffic</ref>
-* Overweight, $186->$216: Barclays thinks (Dec 8, 2023) cost cuts announced this week will likely make its margin expansion goals more credible though its operating leverage is “a bit unusual.”<ref>https://thefly.com/landingPageNews.php?id=3827958&headline=SPOT-Spotify-price-target-raised-by--at-Barclays-heres-why&utm_source=https://thefly.com/news.php%3fsymbol=SPOT&x=20&y=17&utm_medium=referral&utm_campaign=referral_traffic</ref>
+December 8, 2023: Outperform, $185->$225: Baird thinks that the announcement of the search for a new CFO and headcount reduction points to its renewed commitment to balance growth with profitability.<ref>https://thefly.com/landingPageNews.php?id=3828105&headline=SPOT-Spotify-price-target-raised-to--from--at-Baird&utm_source=https://thefly.com/news.php%3fsymbol=SPOT&utm_medium=referral&utm_campaign=referral_traffic</ref>
-* Outperform, $185->$225: Baird thinks (Dec 8, 2023) that the announcement of the search for a new CFO and headcount reduction points to its renewed commitment to balance growth with profitability.<ref>https://thefly.com/landingPageNews.php?id=3828105&headline=SPOT-Spotify-price-target-raised-to--from--at-Baird&utm_source=https://thefly.com/news.php%3fsymbol=SPOT&utm_medium=referral&utm_campaign=referral_traffic</ref>
-* Overweight, $205->$220: JP Morgan analyst welcomed (Dec 4, 2023) the headcount reduction and estimated that the headcount reduction will lead to annual cost-savings of around €350 million. ''“Assuming an average salary of ~225k/employee, we estimate the reductions could drive ~€350M annualized savings, the bulk of which may drop down to profit, though we still expect SPOT to lean into growth investments.”''<ref>https://www.streetinsider.com/Analyst+Comments/Spotify+%28SPOT%29+PT+Raised+to+%24220+at+JPMorgan/22486747.html</ref>
+December 4, 2023: Overweight, $205->$220: JP Morgan analyst welcomed (Dec 4, 2023) the headcount reduction and estimated that the headcount reduction will lead to annual cost-savings of around €350 million. ''“Assuming an average salary of ~225k/employee, we estimate the reductions could drive ~€350M annualized savings, the bulk of which may drop down to profit, though we still expect SPOT to lean into growth investments.”''<ref>https://www.streetinsider.com/Analyst+Comments/Spotify+%28SPOT%29+PT+Raised+to+%24220+at+JPMorgan/22486747.html</ref>
-* Citi analyst Jason Bazinet who recently downgraded Spotify thinks (Dec 4, 2023) the company is done with cost cuts while adding that so much of its cost comes from fees paid to content creators<ref>https://finance.yahoo.com/video/why-spotify-may-done-job-185305661.html</ref>.
-* Wells Fargo analyst Steve Cahall also welcomed (Dec 4, 2023) the workforce reduction while also pointing out that this is probably the last layoff<ref>https://finance.yahoo.com/news/spotify-to-lay-off-17-of-workers-in-bid-to-rightsize-costs-133433474.html</ref>.
-=== Stock's risk/reward no longer attractive ===
+December 4, 2023: Citi analyst Jason Bazinet who recently downgraded Spotify thinks (Dec 4, 2023) the company is done with cost cuts while adding that so much of its cost comes from fees paid to content creators<ref>https://finance.yahoo.com/video/why-spotify-may-done-job-185305661.html</ref>.
-* Buy->neutral, $190: Citi analyst Jason Bazinet likes (Dec 1, 2023) Spotify’s execution and strategy but he’s no longer compelled by the stock’s risk/reward<ref>https://seekingalpha.com/news/4042216-spotify-downgraded-at-citi-amid-shift-to-developing-markets</ref>.
+December 4, 2023: Wells Fargo analyst Steve Cahall also welcomed (Dec 4, 2023) the workforce reduction while also pointing out that this is probably the last layoff<ref>https://finance.yahoo.com/news/spotify-to-lay-off-17-of-workers-in-bid-to-rightsize-costs-133433474.html</ref>.
+December 1, 2023:  Buy->neutral, $190: Citi analyst Jason Bazinet likes (Dec 1, 2023) Spotify’s execution and strategy but he’s no longer compelled by the stock’s risk/reward<ref>https://seekingalpha.com/news/4042216-spotify-downgraded-at-citi-amid-shift-to-developing-markets</ref>.
 == References ==