How to Buy Spotify Stock
Spotify Technology Sa
Spotify Technology S. A. , together with its subsidiaries, provides audio streaming services in the United States, the United Kingdom, Luxembourg, and internationally.
Spotify stock last closed at $510.43, up 1.78% from the previous day, and has increased 141.75% in one year. It has overperformed other stocks in the Internet Content & Information industry by 1.04 percentage points. Spotify stock is currently +141.03% from its 52-week low of $211.77, and -0.31% from its 52-week high of $512.01.
As of Jan 24, 2025, there are 201.58M SPOT shares outstanding. The market cap of SPOT is $102.89B. In the last 24 hours, 1.77M SPOT shares were traded.
How to Buy Spotify Stock
Not sure how to invest in Spotify stock? Here's how.
- Choose where to buy Spotify stock: You need to pick a stock brokerage, but don't worry - we've tested dozens of online stock brokerages and apps to help you determine where to buy Spotify stock.
- Create a brokerage account: Sign up for 0% commission trading with the highest-rated brokerage we've selected.
- Put funds into your brokerage account: Choose your payment method and add your information.
- Evaluate Spotify stock: The Spotify ticker symbol is SPOT. Is Spotify stock a good investment? Should you buy shares of SPOT? How do SPOT's underlying business fundamentals look? Do top analysts think Spotify is a good buy? Why has SPOT's stock price moved recently? (Hint: Our stock market research tools can help you evaluate if SPOT is a good stock to buy).
- Place your SPOT buy order: Decide if you will purchase SPOT shares at the current market price or use a limit order to buy SPOT shares at a particular price.
- Get key alerts regarding your investment in SPOT: Create a watchlist to key updates about your investment in Spotify shares.
Step 1: Choose where to buy Spotify stock
You need a brokerage account in order to access the NYSE market and buy SPOT shares.
Our favorite brokerage: eToro
Based on our experience, eToro is the best brokerage. eToro gives you:
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Get $10 towards your purchase of shares by opening an account with eToro now.
Open eToro AccountStep 2: Create a brokerage account
Now that you've chosen the best brokerage, it's time to fill out some personal information so you are able to buy SPOT stock today.
How to Create a New Account on eToro
- Click here to get started.eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
- Provide your personal details to start your new trading account.
- Submit your application by pressing the "Create Account" button. Get started with eToro today
Step 3: Put funds into your brokerage account
Now that you have created your account on stock apps to use, your next step is to transfer the money for your investment:
Watch the tutorial below for more details depositing money into your new brokerage account.
Step 4: Evaluate Spotify stock
After you have chosen the best place to buy Spotify stock, it's important to analyze their stock prior to buying, so you can understand the risk and upside.
Spotify quick stats
Fundamentals of Spotify
WallStreetZen was built to help part-time investors perform more in-depth fundamental analysis in minutes instead of hours.
You can see all of the due diligence checks on SPOT's stock page.
How is SPOT stock valued?
You can use many financial metrics, analyses, models, and charts to gauge SPOT's fair value.
Using relative valuations methods:
- SPOT may be overvalued based on its P/E ratio of 137.1x, relative to Internet Content & Information industry P/E ratio of 20.98x
- SPOT could be overvalued based on its P/B ratio of 20.88x, relative to Internet Content & Information industry P/B ratio of 7.62x
- SPOT could be overvalued based on its PEG ratio of 1.96x
You can do additional valuation research on SPOT's stock here.
A look at SPOT Cashflows and Balance Sheet
Positive Health Checks:
- There are more short-term assets than short-term liabilities on the SPOT balance sheet.
- SPOT profit margin has gone up from -5.7% to 4.6% in the past year.
- There are more short-term assets than long-term liabilities on the SPOT balance sheet.
- SPOT's operating cash flow of $1.93B allows it to safely service it's debt of $1.90B.
- Total SPOT debt is lower than 5 years ago, relative to shareholder equity.
Negative Health Checks:
- SPOT has a relatively high debt to equity ratio of 1.28.
- SPOT earnings of $1.13B is not sufficient to cover its interest payments.
Do analysts think it's a good time to buy SPOT stock
Out of 21 Wall Street analysts who give ratings on SPOT, the consensus analyst rating on Spotify is a Strong Buy
It's important to note that analyst ratings are not recommendations, nor are they financial advice.
Latest SPOT Analyst Recommendations
Tim Nollen, a top 26% analyst from Macquarie maintains SPOT with a buy rating and raises their SPOT price target from $395.00 to $500.00, on Nov 13, 2024.
Doug Creutz, a top 29% analyst from TD Cowen maintains SPOT with a hold rating and raises their SPOT price target from $356.00 to $416.00, on Nov 13, 2024.
Jessica Reif Ehrlich, a top 18% analyst from Bank of America maintains SPOT with a strong buy rating and raises their SPOT price target from $430.00 to $515.00, on Nov 13, 2024.
Matthew Harrigan, a bottom 1% analyst from Benchmark maintains SPOT with a strong buy rating and raises their SPOT price target from $440.00 to $520.00, on Nov 13, 2024.
Benchmark's Matthew Harrigan raised their price target on Spotify (NYSE: SPOT) by 18.2% from $440 to $520 on 2024/11/13. The analyst maintained their Strong Buy rating on the stock.
Spotify reported its Q3 2024 earnings.
The quarter's results and management's guidance "showcased a premium subscription business firing on all cylinders," Harrigan told investors.
In contrast, Spotify's ads business "remains caught in a brand spending melee," the analyst added.
Harrigan thinks management's 31.8% gross margin guide for Q4 could indicate "flow through and possibly a small increase" in premium leverage from Q3.
Earnings Report
For Q3 2024, Spotify reported:
- EPS of $1.59, which missed the Zacks Consensus Estimate of $1.75 but beat Q3 2023's $0.36.
- Revenue of $4.38B, which beat the Zacks Consensus Estimate by 0.36% and Q3 2023's $3.65B.
For Q4 2024, management guided:
- Revenue of $4.35B.
Founder & CEO Daniel Ek commented: “We’re where we set out to be—if not a little further—and on a steady path toward achieving our long-term goals.
"This relentless pursuit of innovation and commitment to growth sets us up to deliver the most valuable user experience in the industry, while reinforcing the core strengths that make Spotify unique.
"I am very excited about what lies ahead for us.”
Steven Cahall, a top 11% analyst from Wells Fargo maintains SPOT with a strong buy rating and raises their SPOT price target from $470.00 to $520.00, on Nov 13, 2024.
You can dive deeper into what analysts are saying on the Spotify stock forecast page.
Metrics for Advanced SPOT Traders
SPOT Growth Numbers
Last year, SPOT earnings were $745.74M. Over the last five year, SPOT's earnings have grown by 5.96% per year. This was slower than the Internet Content & Information industry average of 24.93%.
Last year, SPOT revenue was $16.07B. Over the past 5 year, SPOT's revenue has increased by 18.98% per year. This was faster than the Internet Content & Information industry average of 18.48%.
Learn more about SPOT's earnings and revenue performance here.
Who is buying/selling SPOT?
Over the past 12 months, insiders at SPOT have not bought or sold any shares.
Research more about who owns SPOT stock here.
Can I rely on SPOT as an income stream?
No, Spotify doesn't provide an income stream by paying out dividends.
What do other traders have to say about SPOT?
One of the primary reasons eToro is our top-rated brokerage is because of its social trading community.
Click below to learn what other investors have to say.
Step 5: Place your SPOT buy order
There are two main order types:
- Market order: A market order is an order to buy or sell a stock at the best possible price.
Market orders are usually the easiest way to buy. - Limit order: A limit order allows you to buy or sell a security at a specific price (or better).
If you want to make sure you're buying or selling at an exact price limit, place a limit order.
Hit the Open Trade button and eToro will place your order.
If you want additional help buying stocks on eToro, click the how to video below:
Step 6: Get key alerts regarding your investment in SPOT
Now that you own some shares in SPOT, you'll want to keep up with your new shares.
Start a watchlist to get notified of important updates regarding your SPOT stock.
SPOT Feed
How to Buy Stock in Spotify
To summarize, here are the 6 steps to buy stock in Spotify:
- Choose where to buy Spotify stock
- Create a brokerage account
- Put funds into your brokerage account
- Evaluate Spotify stock
- Place your SPOT buy order
- Get key alerts regarding your investment in SPOT
If you need a brokerage account, eToro is our recommended venue.
Get Started with eToro TodayIf you would like to keep tabs on your investment in Spotify, hit the button below to create your watchlist.
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