Spotify stock

Spotify stock (NYSE: SPOT) dipped following the company’s Q2 earnings release and then rallied yesterday, but the rebound cooled during early trading today.

Yesterday, Spotify stock (NYSE: SPOT) regained a bit of share-price ground following a post-earnings tumble. Now, the rally looks to be losing steam, with shares down about 17% from late June.

That falloff reflects SPOT’s value at the time of writing, $637. Meanwhile, the price is down from about $655 when the market opened – and from north of $700 at the top of the week as well as a record high of $785 last month.

In other words, Spotify stock has slipped since Tuesday, when the company posted mixed Q2 2025 financials. We broke down those results in detail, but to reiterate, advert revenue proved underwhelming, Premium ARPU slid, a profitability streak ended, and higher-ups settled on measured Q3 guidance.

The focus is rather unsurprisingly shifting to where SPOT goes from here. Despite the above-summarized price decreases, shares are still up nearly 40% from 2025’s start and an astonishing 86% from July 2024.

Without diving too far into the multifaceted sub-topic, this staggering growth, as is so often the case in the market, didn’t necessarily result from fundamental business-model changes or any sort of sweeping pivot. At a glance, staff reductions, a pause on questionable acquisitions, and a profitability prioritization seemingly fueled SPOT’s ascent.

And that ascent is even greater than suggested by the YTD and one-year growth percentages. Factoring for SPOT’s late-2022 lows and this week’s aforementioned high of $700, the stock price multiplied by more than 10 times in less than three years.

(Execs and directors, we previously reported, capitalized on the momentum with a huge pile of SPOT sales.)

Stated differently – and as we’ve noted multiple times – a share-price cooldown was bound to happen at some point, overly enthusiastic target prices or not.

Speaking of targets, Rosenblatt promptly lowered its forecasted SPOT value to $679 in the wake of the earnings release, citing ARPU concerns and cost considerations. Benchmark echoed these ARPU worries, maintained a buy rating, and opted for an $800 target (down from $840).

(Premium monthly ARPU declined about 1% during Q2 2025 to €4.57, Spotify reported. “This decrease of €0.05 is primarily attributable to unfavorable movements in foreign exchange rates, decreasing Premium ARPU by €0.18, and changes in product and market mix, decreasing Premium ARPU by €0.14,” Spotify elaborated.)

Other analysts are a bit more optimistic. KeyBanc likewise reduced its SPOT target, but only to $830, emphasizing the company’s continued user and subscriber growth as well as an anticipated advertising-side turnaround.