It has been a volatile year for the stock market, with investors having to navigate the ongoing geopolitical tensions in the Middle East, new leadership at the Federal Reserve, and a series of new tariffs imposed by the Trump administration.
But Spotify (NYSE: SPOT) stock is down 37% from its all-time high for a different reason
The company operates the world’s largest music streaming platform, and management is currently investing less aggressively in growth in order to prioritize profitability. The strategy is working very well, but it has forced investors to reconsider Spotify’s previously elevated valuation. According to Wall Street, the recent dip might be a great buying opportunity.
The majority of analysts tracked by The Wall Street Journal have rated Spotify stock a buy, with none recommending selling. Plus, their average price target points to substantial potential upside over the coming 12 months. Here’s why their bullishness might be justified.