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Strong Results Drive Analyst Confidence in Spotify Technology S.A. (SPOT)

Spotify Technology S.A. (NYSE:SPOT) is one of the best foreign stocks to buy right now. On February 11, Bernstein SocGen Group analyst Ian Moore reaffirmed an Outperform rating on Spotify Technology S.A. (NYSE:SPOT) and maintained a $650 price target.

According to the analyst, the move was based on Spotify’s stellar performance. Moore was referring to Spotify’s blowout Q4 earnings results and also noted that the company’s management gave a promising Q1 guide. The analyst also noted that Spotify’s stock closed up 15% and partially recovered from a January rout, which Moore associated with competitive threats from music generation and manipulation startups.

On the same day, Benchmark reiterated a Buy rating on Spotify stock and maintained a $760 price target. Like Bernstein, Benchmark’s decision was a reaction to Spotify’s Q4 results. The firm described Spotify as having delivered “an exceptionally clean quarter.”

It noted that Spotify’s Q4 performance helped address concerns around average revenue per user, gross margin, and subscriber growth, adding that its view counters narratives suggesting AI music technology could disrupt Spotify’s business model.

Benchmark also highlighted Spotify management’s view that AI will force aggregation in the music industry. This, they noted, gives an edge to large platforms with data, distribution, and industry alignment like Spotify. The firm emphasized Spotify’s belief that AI-driven content creation will expand the global audio catalog and boost the value of the company’s personalization, discovery, and monetization capabilities.

Spotify Technology S.A. (NYSE:SPOT) is a Luxembourg-based company that operates the world’s largest audio streaming platform. It offers music, podcasts, and digital content to hundreds of millions of users globally.

While we acknowledge the potential of Spotify Technology S.A. (NYSE:SPOT) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SPOT and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 11 Best AI Penny Stocks to Buy Right Now and 13 Best Affordable Tech Stocks to Buy Right Now.

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

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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