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Spotify Stock: Long Runway For Pricing, Margins, And Free...
Cavenagh Research · 2026-06-19 · via All Articles on Seeking Alpha

Summary

  • Spotify's platform is evolving beyond music streaming, compounding engagement, retention, and monetization via add-ons, non-music formats, and advertising.
  • Non-music verticals now contribute significantly to gross margin, validating the add-on model and supporting higher LTV across user cohorts.
  • Partial credit for the 2030 framework—mid-teens revenue growth, 35-40% gross margin, >20% operating margin—supports valuation upside.
  • My valuation points to roughly €120 billion of fair enterprise value, or more than $700 per share. I reiterate my Buy rating on SPOT.
Spotify, Podcasts, Music and other Apps on iPhone screen

stockcam/iStock Unreleased via Getty Images

Spotify's Investor Day Confirms Bullish Upside

Spotify (SPOT) held an investor day mid-May, and after digesting the content management shared, I am left with a very bullish projection through 2030.

In my view, the investor event

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SPOT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Not financial advice

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