Spotify stock (NYSE: SPOT) is riding relatively high following the release of a solid Q4 2025 earnings report. But analysts are continuing to slice their target prices and remain divided about shares’ exact path forward.
That much is clear from the flurry of Spotify stock assessments put out yesterday, on the heels of seemingly strong fourth-quarter results. As we broke down in greater detail, the company improved its net and operating income, added a record number of users, and posted a 10% year-over-year (YoY) subscriber boost.
On the other hand, a YoY advert-revenue expansion didn’t materialize; execs are banking on a turnaround during 2026’s second half. And the DSP settled on measured first-quarter guidance, including the expected net addition of approximately three million subscribers.
All this said, SPOT spiked 15% in early trading on Tuesday, to closer to $500, and subsequently leveled out into the high-$400s. At the time of writing, shares were worth roughly $486 a pop, representing a 16% slip from 2026’s beginning and a 22% decrease from mid-February 2025.
Naturally, then, the focus is shifting to what the future holds for SPOT – though as mentioned, there isn’t a consensus among analysts, whose targets, despite universally implying at least some growth, are all over the place.
On the lower end of the scale, TD Cowen’s Doug Creutz opted for a hold rating and a $525 target, or a full $225 beneath the $750 targets of Canaccord analyst Maria Ripps (down from $850) and Evercore’s Mark Mahaney.
Between those prices, Jefferies sliced its own Spotify stock target from $750 to $650 – as did Morgan Stanley (albeit from $775). Notwithstanding the pricing differences, the analysts touched on many of the same points (slowing subscriber growth, the monetization difficulties associated with quick-expanding emerging markets, etc.) in their breakdowns.
Furthermore, bearing in mind the industry’s growing pile of artificial intelligence partnerships, multiple investors during yesterday’s conference call asked about Spotify’s ability to stay ahead of the curve.
(One of these investors specifically explored the possibility that the ongoing SPOT falloff could reflect market concerns about AI’s having a negative overall impact on the business.)
In short, execs framed their company as already heavily invested in AI and inherently well-positioned to unlock new revenue streams with the technology.
“Now, in terms of the [AI-generated] derivatives, as I said, we think this is an untapped opportunity for artists to make money off of their existing IP,” co-CEO Gustav Söderström communicated. “We have the technology and capabilities that we need, and we’re very excited about it, and we are ready for the partners that are hungry to seize this opportunity.
“We think the ones that move first will benefit the most. So we’re hungry and excited. We’re not particularly stressed about it, but we’re there for people who want to make money,” he proceeded.
“Like Gustav mentioned before,” elaborated co-CEO Alex Norström, “we want to do it [spearhead AI buildouts] in a controlled way, respecting artists and the community. And we will not do deals that aren’t good for artists and ultimately Spotify.”
