A new survey shows that Spotify is widening its lead as the preferred music streaming app among consumers in the U.S. and UK. The news is positive for Spotify Technology stock, an analyst says.
Evercore ISI surveyed 1,300 consumers in each of the two markets for its annual online audio survey.
In the U.S., Spotify is the No. 1 service with a record-high 38% of respondents picking it as their go-to music app. That's up from 35% in the year-earlier survey. Spotify satisfaction levels also are hovering around all-time-high levels at 77%.
In the UK, Spotify is the top music streaming service with a record high of 56% of respondents selecting it as their favorite. That's up from 53% in the 2024 survey. Also, satisfaction with Spotify in the UK is high at 87% of users saying they are "extremely or quite satisfied" with the service.
Evercore analyst Mark Mahaney on Friday reiterated his outperform rating on Spotify stock and raised his price target to 750 from 650.
On the stock market today, Spotify stock rose 1.1% to close at 710.85.
Spotify Stock Is On Tech Leaders List
"The trend results from our survey work are clear," Mahaney said in a client note. "Spotify is the U.S. and UK streaming leader in terms of users, and its leadership position is widening."
Spotify enjoys "very high user satisfaction (and) less price sensitivity than any competitor despite its recent price hike," he said.
In the survey, Alphabet's YouTube was No. 2 for streaming music in the U.S. and UK, followed by Apple's Apple Music.
Spotify stock is on the IBD Tech Leaders list.
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