Spotify Stock Sheds All Gains After Q1 Earnings, But Analysts Are Impressed With the Performance
Portfolio Pulse from Anusuya Lahiri
Spotify Technology SA reported Q1 2024 revenue of $3.95 billion, up 20% YOY, surpassing consensus estimates. EPS was $1.05, beating the $0.70 consensus. Analysts from J.P. Morgan, Piper Sandler, and Goldman Sachs provided positive outlooks, with J.P. Morgan raising its price target to $365. Spotify's gross margin strength, podcast improvements, and advertising gains were highlighted. The company remains confident in achieving its medium-term financial targets. Analysts expect continued revenue growth and profitability increases. Spotify stock is part of the Global X Social Media ETF and ProShares On-Demand ETF.

April 24, 2024 | 7:34 pm
News sentiment analysis
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POSITIVE IMPACT
Spotify's earnings success and favorable analyst ratings may positively impact the ProShares On-Demand ETF, which includes SPOT.
Spotify's outperformance in Q1 2024 and the subsequent positive analyst coverage could lead to increased investor interest in the ProShares On-Demand ETF, which holds Spotify shares. This could potentially enhance OND's appeal to investors looking for exposure to companies like Spotify.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Spotify's positive earnings report and analyst outlooks may contribute to increased investor interest in SOCL, which includes SPOT in its holdings.
Given Spotify's significant positive earnings surprise and the optimistic future outlook provided by analysts, as a component of the Global X Social Media ETF, Spotify's performance is likely to generate positive sentiment among investors towards SOCL, potentially increasing its attractiveness.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Spotify's Q1 2024 earnings beat estimates with strong revenue and EPS growth, leading to positive analyst outlooks and raised price targets.
The positive earnings report and optimistic analyst ratings, especially the raised price targets from J.P. Morgan, Piper Sandler, and Goldman Sachs, indicate a strong short-term bullish sentiment for Spotify's stock. The company's confidence in meeting its financial targets and the analysts' expectations of continued revenue growth and profitability improvements further support this outlook.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100