Is SPOT a good stock to buy right now?

Based on our 6-factor quantitative model, Spotify Technology S.A. (SPOT) receives a "Reduce" rating with a composite score of 43.7/100. It is ranked #2,994 out of 4,446 stocks. Key factor scores: Quality 46/100, Value 56/100, Momentum 38/100. The timing signal is "Bearish". This is quantitative analysis only — not investment advice.

What is the stock rating for SPOT?

Spotify Technology S.A. (SPOT) has a "Reduce" rating and 2-star score. The composite score of 43.7 ranks it #2,994 among 4,446 U.S. stocks. Ratings are updated weekly using academically-proven factor models.

What sector is SPOT in?

Spotify Technology S.A. operates in the Communication Services sector (Communication industry) with a market cap of $96.77 billion. It is classified as a large-cap stock.

Does SPOT pay a dividend?

SPOT does not currently pay a regular dividend. The company may be reinvesting profits for growth.

What is SPOT's P/E ratio?

SPOT has a trailing P/E ratio of 81.10x. The Communication Services sector average is 26.1x. This above-average P/E reflects growth expectations or premium valuation.

How profitable is SPOT?

SPOT's quality factor score is 46/100. Gross margin: 30.1%. ROE: 82.4% vs sector average 1.0%. Margins are moderate to low, reflecting competitive market dynamics.

How is SPOT valued compared to peers?

SPOT's value factor score is 56/100 (higher = cheaper). Key multiples: P/E 81.1x, EV/EBITDA 15.3x. Valuation is roughly in line with peers.

What is SPOT's debt level?

SPOT's debt-to-equity ratio is 36%. Sector average: 82%. Low leverage suggests conservative financial management.

SPOT has a beta of 0.81, meaning it tracks the market. Stability score: 54/100.

Does SPOT have high short interest?

SPOT's short interest factor score is 24/100 (higher = less short selling). Elevated short interest may indicate bearish sentiment or short squeeze potential.

SPOT Stock Analysis: Reduce (Score 43.7/100) | Blank Capital Research

Data Series	1D	5D	1M	YTD	1Y	3Y	5Y	10Y
SPOT	-2.18%	-2.65%	-10.23%	-18.03%	-13.93%	-	-	-
Industry Proxy XLC	-0.28%	+2.01%	-2.92%	-3.20%	+25.91%	-	-	-
U.S. Market SPY	-0.07%	+3.60%	+0.34%	-0.36%	+29.52%	-	-	-
Alpha vs Market	-2.12%	-6.26%	-10.57%	-17.67%	-43.45%	-	-	-
Alpha vs Sector	-1.90%	-4.67%	-7.31%	-14.83%	-39.84%	-	-	-

Metric	SPOT	Benchmark
P/E Ratio	81.1x	+211%
EV/EBITDA	15.3x	+206%
Price / Book	17.4x

Stock Entity	Score▼	Quality	Value	Momentum	P/E Ratio	ROE	Gross Margin	Net Margin	Rev Growth	D/E Ratio	Market Cap	Compare
TIGO MILLICOM INTERNATIONAL CELLULAR SA	62	41	67	81	-	143.3%	42.5%	4.6%	-	884.0x	$12.9B	VS
VZ VERIZON COMMUNICATIONS INC	54	50	77	54	10.8x	17.6%	60.5%	13.7%	3.1%	282.0x	$208.3B	VS
DLX DELUXE CORP	54	50	76	69	16.4x	11.6%	53.3%	3.7%	0.4%	321.0x	$1.3B	VS
NYT NEW YORK TIMES CO	53	50	52	68	49.3x	13.6%	50.2%	10.4%	12.1%	47.0x	$13.8B	VS
BCE BCE INC	52	37	71	51	186.8x	8.8%	43.4%	1.5%	-9.3%	237.0x	$23.7B	VS
T AT&T INC.	52	50	68	46	9.9x	15.3%	62.0%	15.8%	3.1%	107.0x	$197.7B	VS
MSGE Madison Square Garden Entertainment Corp.	51	50	59	67	48.3x	166.0%	40.3%	-1.0%	101.4%	1,540.0x	$2.7B	VS
ADEA Adeia Inc.	50	50	61	67	51.2x	11.8%	100.0%	16.4%	-0.0%	87.0x	$2.8B	VS
CDRO Codere Online Luxembourg, S.A.	50	46	53	61	-	65.0%	90.7%	1.9%	12.7%	0.0x	$389M	VS
TGNA TEGNA INC	50	50	67	46	10.4x	9.8%	38.3%	10.6%	-8.4%	80.0x	$3.2B	VS
SPOT Spotify Technology S.A.	44	46	56	38	81.1x	82.4%	30.1%	7.3%	-	36.0x	$96.8B

Key Ratio	TTM	2024	2023	2022	2021	2020	2019	2018	2017
Gross Margin %	0.3%	0.3%	0.3%	0.2%	0.3%	0.3%	0.3%	0.3%	0.2%
Operating Margin %	0.1%	0.1%	-0.0%	-0.1%	0.0%	-0.0%	-0.0%	-0.0%	-0.1%
EBITDA Margin %	0.1%	0.1%	-0.0%	-0.0%	0.0%	-0.0%	0.0%	-0.0%	-0.1%
Net Margin %	0.1%	0.1%	-0.0%	-0.0%	-0.0%	-0.1%	-0.0%	-0.0%	-0.3%
FCF Margin %	14.6%	14.6%	5.1%	-2.5%	2.9%	2.3%	6.5%	4.2%	3.5%
ROE %	0.8%	0.2%	-0.2%	-0.2%	-0.0%	-0.2%	-0.1%	-0.0%	-5.2%
ROA %	0.4%	0.1%	-0.1%	-0.1%	-0.0%	-0.1%	-0.0%	-0.0%	-0.4%
ROIC %	39.3%	39.3%	-31.9%	-32.5%	6.4%	-10.4%	-3.6%	-2.8%	-

Key Ratio

TTM

2024

2023

2022

2021

2020

2019

2018

2017

Gross Margin %

0.3%

0.2%

0.3%

0.2%

Operating Margin %

0.1%

-0.0%

-0.1%

0.0%

-0.0%

-0.1%

EBITDA Margin %

0.1%

-0.0%

0.0%

-0.0%

0.0%

-0.0%

-0.1%

Net Margin %

0.1%

-0.0%

-0.1%

-0.0%

-0.3%

FCF Margin %

14.6%

5.1%

-2.5%

2.9%

2.3%

6.5%

4.2%

3.5%

ROE %

0.8%

0.2%

-0.2%

-0.0%

-0.2%

-0.1%

-0.0%

-5.2%

ROA %

0.4%

0.1%

-0.1%

-0.0%

-0.1%

-0.0%

-0.4%

ROIC %

39.3%

-31.9%

-32.5%

6.4%

-10.4%

-3.6%

-2.8%

Line Item	TTM	2024	2023	2022	2021	2020	2019	2018	2017
	$16.2B	$16.2B	$14.7B	$12.5B	$10.9B	$9.6B	$7.6B	$6.0B	$4.9B
	$4.9B	$4.9B	$3.8B	$3.1B	$2.9B	$2.5B	$1.9B	$1.5B	$1.0B
Gross Margin	30.1%	30.1%	25.6%	24.9%	26.8%	25.6%	25.5%	25.7%	20.8%
	—	$1.5B	$1.9B	$1.5B	$1.0B	$1.0B	$690M	$564M	$476M
Depreciation	—	$170M	$311M	$183M	$144M	$136M	$98M	$37M	$65M
	$1.4B	$1.4B	-$493M	-$705M	$106M	-$358M	-$82M	-$49M	-$454M
EBIT	$1.4B	$1.4B	-$493M	-$705M	$106M	-$358M	-$82M	-$49M	-$454M
EBITDA	$1.6B	$1.6B	-$183M	-$522M	$250M	-$222M	$16M	-$14M	-$388M
Operating Margin	8.7%	8.7%	-3.4%	-5.6%	1.0%	-3.7%	-1.1%	-0.8%	-9.2%
EBITDA Margin	9.8%	9.8%	-1.2%	-4.2%	2.3%	-2.3%	0.2%	-0.2%	-7.9%
	—	$364M	$243M	$141M	$103M	$623M	$374M	$668M	$1.2B
	—	$210M	$30M	$64M	$320M	-$156M	$62M	-$109M	$2M
	$1.2B	$1.2B	-$588M	-$460M	-$38M	-$710M	-$209M	-$89M	-$1.5B
Net Margin	7.3%	7.3%	-4.0%	-3.7%	-0.4%	-7.4%	-2.8%	-1.5%	-30.2%
	$5.87	$5.87	$-3.02	$-2.23	$-0.18	$-3.10	$-1.03	$-0.44	$-8.14
Diluted EPS	$5.87	$5.87	$-3.02	$-2.23	$-0.18	$-3.10	$-1.03	$-0.44	$-8.14

Line Item

TTM

2024

2023

2022

2021

2020

2019

2018

2017

$16.2B

$14.7B

$12.5B

$10.9B

$9.6B

$7.6B

$6.0B

$4.9B

$3.8B

$3.1B

$2.9B

$2.5B

$1.9B

$1.5B

$1.0B

Gross Margin

30.1%

25.6%

24.9%

26.8%

25.6%

25.5%

25.7%

20.8%

—

$1.5B

$1.9B

$1.5B

$1.0B

$690M

$564M

$476M

Depreciation

—

$170M

$311M

$183M

$144M

$136M

$98M

$37M

$65M

$1.4B

-$493M

-$705M

$106M

-$358M

-$82M

-$49M

-$454M

EBIT

$1.4B

-$493M

-$705M

$106M

-$358M

-$82M

-$49M

-$454M

EBITDA

$1.6B

-$183M

-$522M

$250M

-$222M

$16M

-$14M

-$388M

Operating Margin

8.7%

-3.4%

-5.6%

1.0%

-3.7%

-1.1%

-0.8%

-9.2%

EBITDA Margin

9.8%

-1.2%

-4.2%

2.3%

-2.3%

0.2%

-0.2%

-7.9%

—

$364M

$243M

$141M

$103M

$623M

$374M

$668M

$1.2B

—

$210M

$30M

$64M

$320M

-$156M

$62M

-$109M

$2M

$1.2B

-$588M

-$460M

-$38M

-$710M

-$209M

-$89M

-$1.5B

Net Margin

7.3%

-4.0%

-3.7%

-0.4%

-7.4%

-2.8%

-1.5%

-30.2%

$5.87

$-3.02

$-2.23

$-0.18

$-3.10

$-1.03

$-0.44

$-8.14

Diluted EPS

$5.87

$-3.02

$-2.23

$-0.18

$-3.10

$-1.03

$-0.44

$-8.14

Spotify Technology S.A. (SPOT) Stock Analysis — April 2026 Rating, Price, and Forecast

Last updated: April 2026

Company Overview — What Does Spotify Technology S.A. Do?

Spotify Technology S.A., together with its subsidiaries, provides audio streaming services worldwide. It operates through Premium and Ad-Supported segments. The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers. The Ad-Supported segment provides on-demand online access to its catalog of music and unlimited online access to the catalog of podcasts to its subscribers on their computers, tablets, and compatible mobile devices. The company also offers sales, marketing, contract research and development, and customer support services. As of December 31, 2021, its platform included 406 million monthly active users and 180 million premium subscribers in 184 countries and territories. The company was incorporated in 2006 and is based in Luxembourg, Luxembourg. Spotify Technology S.A. (SPOT) is classified as a large-cap stock in the Communication Services sector, specifically within the Communication industry. The company is led by CEO Daniel Ek and employs approximately 6,620 people. With a market capitalization of $96.8B, SPOT is one of the prominent companies in the Communication Services sector.

Spotify Technology S.A. (SPOT) Stock Rating — Reduce (April 2026)

As of April 2026, Spotify Technology S.A. receives a Reduce rating with a composite score of 43.7/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.SPOT ranks #2,994 out of 4,446 stocks in our coverage universe. Within the Communication Services sector, Spotify Technology S.A. ranks #90 of 134 stocks, placing it in the lower half of its Communication Services peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

SPOT Stock Price and 52-Week Range

Spotify Technology S.A. (SPOT) currently trades at $476.28. The stock lost $10.34 (2.1%) in the most recent trading session. The 52-week high for SPOT is $785.00, which means the stock is currently trading -39.3% from its annual peak. The 52-week low is $405.00, putting the stock 17.6% above its annual trough. Recent trading volume was 1.6M shares, reflecting moderate market activity.

Is SPOT Overvalued or Undervalued? — Valuation Analysis

Spotify Technology S.A. (SPOT) carries a value factor score of 56/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 81.10x, compared to the Communication Services sector average of 26.08x — a premium of 211%. The price-to-book ratio stands at 17.39x, versus the sector average of 1.87x. The price-to-sales ratio is 1.53x, compared to 0.55x for the average Communication Services stock. On an enterprise value basis, SPOT trades at 15.26x EV/EBITDA, versus 4.98x for the sector.

Overall, SPOT's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.

Spotify Technology S.A. Profitability — ROE, Margins, and Quality Score

Spotify Technology S.A. (SPOT) earns a quality factor score of 46/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 82.4%, compared to the Communication Services sector average of 1.0%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 37.9% versus the sector average of -0.0%.

On a margin basis, Spotify Technology S.A. reports gross margins of 30.1%, compared to 56.4% for the sector. The operating margin is 8.7% (sector: 0.4%). Net profit margin stands at 7.3%, versus -0.9% for the average Communication Services stock. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.

SPOT Debt, Balance Sheet, and Financial Health

Spotify Technology S.A. has a debt-to-equity ratio of 36.0%, compared to the Communication Services sector average of 82.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. Total debt on the balance sheet is $2.07B. Cash and equivalents stand at $4.95B.

SPOT has a beta of 0.81, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for Spotify Technology S.A. is 54/100, reflecting average volatility within the normal range for its sector.

Spotify Technology S.A. Revenue and Earnings History — Quarterly Trend

In TTM 2026, Spotify Technology S.A. reported revenue of $16.22B and earnings per share (EPS) of $5.87. Net income for the quarter was $1.18B. Gross margin was 30.1%. Operating income came in at $1.41B.

In FY 2024, Spotify Technology S.A. reported revenue of $16.22B and earnings per share (EPS) of $5.87. Net income for the quarter was $1.18B. Gross margin was 30.1%. Revenue grew 10.7% year-over-year compared to FY 2023. Operating income came in at $1.41B.

In FY 2023, Spotify Technology S.A. reported revenue of $14.65B and earnings per share (EPS) of $-3.02. Net income for the quarter was $-588M. Gross margin was 25.6%. Revenue grew 16.8% year-over-year compared to FY 2022. Operating income came in at $-493M.

In FY 2022, Spotify Technology S.A. reported revenue of $12.55B and earnings per share (EPS) of $-2.23. Net income for the quarter was $-460M. Gross margin was 24.9%. Revenue grew 14.7% year-over-year compared to FY 2021. Operating income came in at $-705M.

Over the past 8 quarters, Spotify Technology S.A. has demonstrated a growth trajectory, with revenue expanding from $6.02B to $16.22B. Investors analyzing SPOT stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

SPOT Dividend Yield and Income Analysis

Spotify Technology S.A. (SPOT) does not currently pay a dividend. This is common among growth-oriented companies in the Communication industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Communication Services dividend stocks may want to explore other Communication Services stocks or use the stock screener to filter by dividend yield.

SPOT Momentum and Technical Analysis Profile

Spotify Technology S.A. (SPOT) has a momentum factor score of 38/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 44/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 24/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.

SPOT vs Competitors — Communication Services Sector Ranking and Peer Comparison

Within the Communication Services sector, Spotify Technology S.A. (SPOT) ranks #90 out of 134 stocks based on the Blank Capital composite score. This places SPOT in the lower half of all Communication Services stocks in our coverage universe. Key competitors and sector peers include MILLICOM INTERNATIONAL CELLULAR SA (TIGO) with a score of 61.6/100, TEGNA INC (TGNA) with a score of 49.6/100, VERIZON COMMUNICATIONS INC (VZ) with a score of 54.2/100, DELUXE CORP (DLX) with a score of 53.8/100, and NEW YORK TIMES CO (NYT) with a score of 53.2/100.

Comparing SPOT against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full SPOT vs S&P 500 (SPY) comparison to assess how Spotify Technology S.A. stacks up against the broader market across all factor dimensions.

SPOT Next Earnings Date

No upcoming earnings date has been announced for Spotify Technology S.A. (SPOT) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy SPOT? — Investment Thesis Summary

The quantitative profile for Spotify Technology S.A. suggests caution. Momentum is weak at 38/100, a headwind for near-term performance.

In summary, Spotify Technology S.A. (SPOT) earns a Reduce rating with a composite score of 43.7/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on SPOT stock.

Related Resources for SPOT Investors

Explore more research and tools: SPOT vs S&P 500 comparison, top Communication Services stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare SPOT head-to-head with peers: SPOT vs TIGO, SPOT vs TGNA, SPOT vs VZ.

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Spotify Technology S.A. (SPOT) Stock Analysis — April 2026 Rating, Price, and Forecast

Company Overview — What Does Spotify Technology S.A. Do?

Spotify Technology S.A. (SPOT) Stock Rating — Reduce (April 2026)

SPOT Stock Price and 52-Week Range

Is SPOT Overvalued or Undervalued? — Valuation Analysis

Spotify Technology S.A. Profitability — ROE, Margins, and Quality Score

SPOT Debt, Balance Sheet, and Financial Health

Spotify Technology S.A. Revenue and Earnings History — Quarterly Trend

SPOT Dividend Yield and Income Analysis

SPOT Momentum and Technical Analysis Profile

SPOT vs Competitors — Communication Services Sector Ranking and Peer Comparison

SPOT Next Earnings Date

Should You Buy SPOT? — Investment Thesis Summary

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