Bernstein analyst Ian Moore has reduced the firm's price target on Spotify (SPOT) to $650 from $830, while keeping an Outperform rating on the shares. The adjustment follows observations of competitive lean-forward AI features emerging in the market.
Moore noted that the launch of such AI features represents the cleanest path toward alleviating downward pressure on valuation, as startups in this space gain traction. On the home front, resilient relative engagement trends continue to highlight for Bernstein that the sympathy trade with Netflix (NFLX) is unwarranted.
The firm also sees potential for outsized U.S. pricing action in 2026, although it models $1 in the second quarter. The analysis was published on TheFly, a source for real-time, market-moving financial news.