Spotify Technology stock received a Street-high price target on Tuesday after the streaming music leader notched an all-time high on Monday. It hit another record high on Tuesday.
Pivotal Research Group analyst Jeffrey Wlodarczak reiterated his buy rating on Spotify stock and raised his price target to 900 from 800.
On Monday, Spotify rose 0.7% to close at 715.57. During the regular session, it hit a then-record high of 723.70.
On the stock market today, Spotify stock jumped to a new record high of 728.80 before pulling back. It ended the regular session up 0.8% to 721.28.
On May 2, Spotify stock broke out of a double-bottom base at a buy point of 621.20, according to IBD MarketSurge charts. It had flirted with that buy point for several trading sessions around its first-quarter report. Spotify stock later had a four-weeks-tight entry just above that base, but is now extended from that 669 entry as well.
"Our positive Spotify investment thesis remains unchanged," Wlodarczak said in a client note. "The company has won the global audio streaming wars (driven mainly by their best-in-class user interface and recommendation engine) and audio streaming still appears underpenetrated globally allowing them to take price and still generate solid subscriber growth, a powerful combination."
He sees Spotify potentially growing from about 700 million monthly active users to 1 billion eventually. With such a large user base, Spotify has an opportunity to add complementary services and products, Wlodarczak said.
Spotify Stock Is A Tech Leader
Plus, Spotify is seeing improvements in its advertising business, he said.
"In a potentially weakening global economic climate, Spotify (like buy-rated Netflix) remains a very attractively priced entertainment alternative," Wlodarczak said.
Spotify stock is on the IBD Tech Leaders list.
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
