Spotify Technology (SPOT): Morgan Stanley Reaffirms Buy After Strong Q3 User Growth

Spotify Technology S.A. (NYSE:SPOT) is among the most fantastic stocks every investor should pay attention to. On November 5, Benjamin Swinburne, a U.S. Media sector analyst at Morgan Stanley, reaffirmed the company’s Buy rating with an unchanged price target of $800, following its Q3 2025 results.

Spotify Technology S.A. (NYSE:SPOT) reported an 11% growth in its monthly active users (MAU) to 713 million, which came in better than the company’s own guidance and the consensus, according to LSEG data. Swinburne notes that faster product upgrades and developments underpin this growth in user adoption. He believes that this innovation-led growth in users and engagement should result in strong, low-to-mid-teens revenue growth in the coming years.

Spotify (SPOT): Morgan Stanley Reaffirms Buy After Strong Q3 User Growth

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The analyst also appreciated the company’s push into higher-margin verticals and enhancement of its platform capabilities, which, in his view, should support margin expansion. Moreover, Swinburne also added that Spotify’s focus on AI-driven personalization and automation is beginning to translate into improvement in operating leverage.

While we don’t have his updated estimates following the Q3 results, Swinburne had estimated an EBIT compound annual growth rate (CAGR) of around 40% through 2028 in his earlier report on October 21. He also expected that the EBIT in 2028 would exceed street expectations by over 10%, highlighting the analyst’s confidence in the company’s execution.

Meanwhile, on November 4, Spotify Technology S.A. (NYSE:SPOT) reported better-than-expected results, but its Q4 2025 revenue guidance of $4.5 billion and 289 million premium subscribers was modestly below the consensus, according to a report from CNBC. That said, the company guided for an operating profit of €620 million and an addition of 32 million of net new MAUs (to total 745 million) in Q4, which was 1%-2% ahead of street expectations.

The consensus remains strongly positive on the stock, with a 1-year median price target of $760, implying a solid 24% upside.

Spotify Technology S.A. (NYSE:SPOT) is a Swedish company that operates a global audio-streaming platform, offering music, podcasts, and audiobooks to users across subscription and ad-supported tiers.

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Disclosure: None. This article is originally published at Insider Monkey.