Spotify's shares on the New York Stock Exchange experienced a 5% surge, approaching their highest value of over $500, following a positive report from UBS.
UBS analysts predict a strong financial performance for Spotify in 2025, with an estimated addition of 23 million new paying subscribers, slightly lower than the 24 million projected for 2024. The report also mentions expectations for improved profit margins and forecasts a free cash flow of three billion euros for the company in 2025, up from two billion euros in the previous year.
UBS maintains its buy recommendation, demonstrating confidence in Spotify's growth trajectory as it continues to expand its subscriber base and enhance profitability.