Spotify Technology (SPOT) Experiences Soft Sentiment From Analysts

We recently published 13 Best ADR Stocks to Invest In.  Spotify Technology S.A. (NYSE:SPOT) is one of the best ADR stocks.

Spotify Technology S.A. (NYSE:SPOT) is one of the largest audio streaming platforms in the world. On December 5th, Erste Group downgraded its shares to Hold from Buy and cited growth concerns as the reason. In its report, the firm pointed out that Spotify Technology S.A. (NYSE:SPOT) could suffer from weaker consumer confidence in the US and struggle to justify its current valuation as a result.

A couple of days later, Spotify Technology S.A. (NYSE:SPOT) announced that it aims to allow its premium subscribers access to music videos. The videos will be available in beta to users in the US and Canada. The growth of online streaming, with YouTube’s rise, appears to have also influenced Spotify Technology S.A. (NYSE:SPOT)’s operating calculus.

Spotify Technology (SPOT) Experiences Soft Sentiment From Analysts

Pixabay/Public Domain

Spotify Technology S.A. (NYSE:SPOT)’s heft was visible in its fiscal third-quarter earnings report in November. The results saw the firm reveal that its subscribers grew by 12% annually to 281 million. Spotify Technology S.A. (NYSE:SPOT)’s monthly active users also grew by 11% to 713 million. While Erste Group is concerned about the impact of tight consumer spending on revenue, Philip Securities increased Spotify Technology S.A. (NYSE:SPOT)’s share price target to $650 from $600 on November 10th and changed the rating to Accumulate from Reduce as it cited limited churn despite higher Premium prices.

While we acknowledge the risk and potential of SPOT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SPOT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.