Spotify Stock Below IPO Day Price, $6.7B Off Peak Valuation

Spotify stock is continuing to struggle, closing Thursday at $148.96 and just below its $198.99 per share peak  just three months ago. That leaves the streamer with a $26.31 billion market cap, down $6.7 billion from a $33 billion peak summer valuation.  The stock slipped as low as $146.01 in after hours trading.

But Morgan Stanley's Benjamin Swinburne maintains his Overweight rating of Spotify with an unchanged $225 price target. His bullish case for Spotify's stock is based on the potential size of the global market for streaming music, according to financial site Benzinga. "Morgan Stanley's $225 price target is based on a 4-4.5 times forward revenue multiple and 15.5 forward gross profit. Both multiples represent a discount compared to Netflix."