Spotify Technology SA recorded impressive revenue growth of 20% in the second quarter of 2024. The streaming giant was able to significantly increase both its number of customers and its operating profit. What was particularly pleasing for investors was that the company’s profitability increased noticeably, which led to a jump in the share price.
Analysts optimistic
The US investment bank Goldman Sachs reacted promptly to the positive figures and upgraded Spotify shares from “Neutral” to “Buy”. The price target was raised from 320 to 425 US dollars. Analyst Eric Sheridan emphasized Spotify’s clear market leadership and sees further potential in margins and free cash flow in the second half of the year and in 2025.
Despite the recent price increase, some challenges remain. The intense competition in the streaming market and ongoing discussions about music licensing could influence the short-term development. Nevertheless, Spotify seems well positioned to benefit from the growing demand for digital audio content.
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