Benchmark Reiterates Buy Rating on Spotify (SPOT) Following 'Exceptionally Clean Quarter'

Benchmark analyst Mark Zgutowicz reiterated a Buy rating and $760.00 price target on Spotify (NYSE: SPOT).

The analyst commented, "Spotify delivered an exceptionally clean quarter quashing concerns of waning ARPU, GM and sub growth, and lacking an offensive playbook against the AI music tech disintermediation narrative.... Management framed AI not as a threat to disintermediation but rather forcing aggregation that structurally favors scaled platforms with data, distribution, and industry alignment. The core thesis is that AI-driven content creation will massively expand the global audio catalog, which raises, not lowers, the value of Spotify’s scaled personalization, discovery, and monetization. Said differently, as the catalog explodes, the “personalization problem” becomes harder, and Spotify’s diverse global data, reinforcement-learning systems, and engagement flywheel steepen its moat. Management emphasized that Spotify is not trying to “win” AI model development or compete with creation tools, but to be the place where AI-created (and human-created) content breaks cultural charts/listening behaviors and monetizes at scale, and compounds lifetime value through superior engagement."

For an analyst ratings summary and ratings history on Spotify click here. For more ratings news on Spotify click here.

Shares of Spotify closed at $476.02 yesterday.

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