Spotify's 'darkest days of this downturn are ahead' - Monness, Crespi, Hardt

  • Investing.com
  • Stock Market News
Spotify's 'darkest days of this downturn are ahead' - Monness, Crespi, Hardt
Credit: © Reuters.

Spotify (NYSE: SPOT ) was cut to Neutral from Buy at Monness, Crespi, Hardt in a note Thursday, with the firm's analysts not assigning the stock a price target.

They told investors that after a sharp rally and with the Spotify price hikes rolling out, they have decided to move to the sidelines.

"Spotify’s stock has enjoyed a strong rebound this year, racking up a gain more than double the average increase for our coverage universe in 2023, rising 95%," they explained. "Given this strong outperformance and our mounting concerns surrounding the potential collateral damage from this downturn, we are stepping to the sidelines on Spotify."

Spotify is scheduled to report its 3Q results on October 24, and while the analysts said it is riding a favorable long-term trend, enhancing its platform, tapping into a large digital ad market, expanding its audio offerings, and improving its cost structure, they feel that the competition is fierce, and margins thin.

As a result, the firm believes that for Spotify, "the darkest days of this downturn are ahead of us."

The streaming giant's shares are down over 2% on Thursday following the note, trading around $150.40 per share.

Add Chart to Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100
Please try another search