Spotify (SPOT): analysis in plain words
Is Spotify cheap or expensive? How it makes money, whether it grows and its risks, explained in plain words and with its official accounts.
Spotify (SPOT) is listed on the NYSE and we classify it in internet, media and entertainment. Below are its key dated figures, how it makes money, how it compares with its sector, what works for and against Spotify according to those figures, and the questions people ask most about the stock. No buy or sell tips.
Spotify (SPOT) key figures as of November 4, 2026
| Figure | Value | What it measures |
|---|---|---|
| Share price | $627.66 | Last price on November 4, 2026 |
| P/E ratio (TTM) | 38.2x | Price over earnings per share |
| Revenue growth | +16.3% | Latest quarter vs the same quarter a year earlier |
| Net margin (TTM) | 15.7% | Profit for every 100 of sales |
| Net debt / EBITDA | Net cash (more cash than debt) | Years of operating profit to repay debt |
| Dividend yield | 0.00% | Annual dividend over price |
| Market cap | $129.0 billion | What the stock market values it at |
The Spotify figures come from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026. Any SPOT figure that is not available shows as N/A: we do not estimate it.
How Spotify makes money
Spotify, the music streaming service, reports two segments: Premium, the paid subscriptions that generate the vast majority of its revenue, and Ad-Supported, the free tier funded by advertising. Besides music it offers podcasts and audiobooks, and it pays royalties to record labels and publishers. Europe and North America are its largest markets.
Over the last 12 months, Spotify brought in revenue of €18.8 billion. For every 100 it sells, Spotify keeps 33.1 after the direct cost of what it sells (gross margin) and 13.5 after all operating costs (operating margin).
Spotify against its sector
To know whether a Spotify figure is high or low you have to put it next to similar companies. This table compares Spotify with the median of the 11 internet, media and entertainment companies Fintols covers, with data as of November 4, 2026.
| Figure | Spotify | internet, media and entertainment median |
|---|---|---|
| P/E | 38.2x | 24.5x (11) |
| Revenue growth | +16.3% | +15.9% (14) |
| Net margin | 15.7% | 9.3% (15) |
| Dividend yield | 0.00% | 0.00% (15) |
| Net debt / EBITDA | -2.4x | 0.3x (13) |
In short, against the typical internet, media and entertainment company, Spotify trades on a higher P/E, earns a wider margin and carries less debt. By size, Spotify ranks number 6 of 14 internet, media and entertainment companies quoted in USD on Fintols.
The bull case for Spotify
What works in favour of Spotify, according to its figures as of November 4, 2026:
- Spotify earns 35.8% a year on its shareholders' money (return on equity).
- Spotify holds more cash than debt (net cash), so it does not depend on lenders to keep investing and is better placed to ride out a bad year.
- Spotify keeps 15.7 of every 100 it sells as net profit, against 9.3 for the median internet, media and entertainment company: a margin like that leaves money to invest, buy back shares or pay dividends.
The main risk for Spotify
The price already assumes a lot: Spotify trades at 38.2x its last 12 months of earnings, against 24.5x for the internet, media and entertainment median. If growth disappoints, the multiple can shrink and the share price with it.
And, like the rest of internet, media and entertainment, Spotify is exposed to a drop in advertising or subscription spending when the economy cools, plus regulation on data and competition.
Frequently asked questions about Spotify
Is it a good time to buy Spotify stock?
Fintols does not tell you whether to buy or sell Spotify, and nobody knows what the price will do tomorrow. What we can show you is where it stands today. As of November 4, 2026, Spotify stock trades at $627.66, 6% below its 52-week high ($668.50) and 55% above its low ($405.00). Its P/E is 38.2x against a internet, media and entertainment median of 24.5x, and 41.2x on the earnings analysts expect over the next 12 months. With Spotify, as with any stock, timing matters less than understanding the business, investing for the long run and not betting everything on a single company.
Does Spotify pay a dividend?
No. As of November 4, 2026, Spotify does not pay a dividend: what it earns stays in the company to grow, invest or, where it does so, buy back shares. Anyone buying Spotify today is counting on the share price rising, not on income.
Is Spotify stock expensive?
It depends on what you compare it with. On P/E, Spotify trades at 38.2x its last 12 months of earnings: more expensive than the internet, media and entertainment median (24.5x). Including its debt, Spotify is valued at 42.2x its EBITDA (EV/EBITDA). A high P/E alone does not make Spotify expensive: it can be justified if earnings grow fast, and a low one can reflect a business in trouble.
Who are Spotify's competitors?
On Fintols we compare Spotify with Uber, DoorDash and Electronic Arts, which are also in internet, media and entertainment. As of November 4, 2026, Uber is worth $142.7 billion and trades on a P/E of 15.3; DoorDash is worth $86.6 billion and trades on a P/E of 82.4; Electronic Arts is worth $52.9 billion and trades on a P/E of 59.7. Each has a side-by-side comparison with Spotify below.
Spotify competitors
- Uber (UBER) analysis · Spotify vs Uber comparison
- DoorDash (DASH) analysis · Spotify vs DoorDash comparison
- Electronic Arts (EA) analysis · Spotify vs Electronic Arts comparison
To understand Spotify better
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- 7 Common Beginner Investing Mistakes (and How to Avoid Them)
More companies like Spotify: internet, media and entertainment stocks. Open the full SPOT analysis with its valuation and scenarios. Educational content about Spotify, not investment advice.