Spotify lost momentum ‘without a clear margin uplift story,’ says Wells Fargo

Wells Fargo analyst Steven Cahall says Spotify’s margin outlook didn’t satisfy high expectations with price increases ahead. Without a clear margin uplift story the stock has lost some momentum, the analyst tells investors in a research note. The firm keeps an Overweight rating on the shares with a $250 price target but does expect much incremental information from now until the Q3 results. Wells continues to like customer lifetime value as the valuation method for Spotify shares.