Spotify Demonstrates Robust Financial Health With Impressive Q1 Revenue, Margin Improvements: Analyst
Portfolio Pulse from Anusuya Lahiri
Spotify Technology SA (NYSE:SPOT) reported a strong fiscal first-quarter 2024 with a 20% year-on-year revenue growth to $3.95 billion, surpassing the consensus of $3.85 billion. EPS was $1.05, beating the consensus of $0.70. Goldman Sachs analyst Eric Sheridan maintains a Neutral rating on SPOT with a price target of $277. The positive earnings report and forward-looking commentary, along with improvements in gross and operating margins driven by music and podcast trends, led to a 14.74% increase in SPOT shares to $312.31.
April 23, 2024 | 6:08 pm
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POSITIVE IMPACT
Spotify's Q1 2024 earnings exceeded expectations with significant revenue and EPS growth, leading to a notable stock price increase of 14.74% to $312.31.
The positive earnings report, which surpassed consensus estimates for both revenue and EPS, combined with improvements in gross and operating margins, likely contributed to the significant stock price increase. The analyst's neutral rating with a price target of $277 suggests cautious optimism, but the market's reaction indicates strong investor confidence in Spotify's financial health and growth trajectory.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100