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.

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