Spotify – The planned AI remix add-on strengthens my trend reversal thesis

Bernstein raised the price target from $625 to $725 (Outperform) on October 26. The analyst expects Spotify to convert more of the growth into rising profits in the future.
Andreas Zehetner
A. Zehetner
Reading Time: 2 minutes

Spotify (SPOT) gained 6.5% on October 30 while the Nasdaq Composite lost 2.9%. This confirms my thesis about a trend reversal. I particularly like that Spotify is using artificial intelligence not only for better music recommendations but also to create new revenue streams. According to the Financial Times, a AI remix offering is expected to launch as early as Q1 2027. For an additional $4 to $5 per month, premium customers could transform well-known songs into new music styles or create AI covers. Original artists are expected to agree and be...

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