Mark Zgutowicz, an analyst from Benchmark Co., reiterated the Buy rating on Spotify. The associated price target remains the same with $800.00.
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Mark Zgutowicz has given his Buy rating due to a combination of factors including Spotify’s strategic partnership with Netflix. This collaboration is expected to enhance Spotify’s video podcast engagement and monetization by shifting select content from YouTube to Netflix. This move not only broadens Spotify’s reach by tapping into Netflix’s vast subscriber base but also potentially opens new licensing revenue streams.
Additionally, this strategy aligns with Spotify’s recent departure from podcast exclusivity, allowing creators to simulcast on platforms like YouTube while preparing to pull top shows from YouTube to Netflix. This partnership with Netflix is seen as a strategic opportunity to expand monetization and viewership of Spotify’s popular content, while maintaining the option to revert content to its own platform. Overall, Zgutowicz anticipates that Spotify’s ambitions in video podcasting will evolve into a robust video content platform, leveraging both its own network and partnerships like Netflix.
In another report released on October 13, Morgan Stanley also maintained a Buy rating on the stock with a $800.00 price target.