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Pivotal upgrades Spotify to buy after big stock drop, sees users doubling

The Spotify app on an iPhone.
Fabian Sommer | picture alliance | Getty Images

Soft user growth during the opening months of 2021 doesn't change Spotify's long-term bull case, research firm Pivotal said Thursday.

Shares of the company crated by 12% on Wednesday after the first-quarter report showed slower-than-expected growth for monthly active users. However, Pivotal analyst Jeffrey Wlodarczak said the company was still set up for strong growth in the years ahead and upgraded the stock to buy from hold.

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