Spotify Maintains $650 and $760 Targets After 15% Surge; Engineers Oversee AI Code
On Feb 11 Bernstein analyst Ian Moore reaffirmed an Outperform rating on Spotify with a $650 target and Benchmark maintained a $760 target after Spotify's Q4 blowout and promising Q1 guide, noting 15% share rebound. CEO Gustav Söderström said top developers are now solely supervising AI-generated code in 2026.
1. Analyst Ratings Reaffirmed
Bernstein SocGen Group analyst Ian Moore reaffirmed an Outperform rating on Spotify and maintained a $650 price target, while Benchmark reiterated a Buy rating with a $760 target based on the company’s recent financial performance.
2. Strong Q4 Performance and Guidance
Spotify delivered blowout Q4 results that addressed average revenue per user, gross margin and subscriber growth concerns, and management provided a promising Q1 revenue and subscriber forecast that bolstered analyst confidence.
3. AI-Driven Development Shift
CEO Gustav Söderström stated that in 2026 Spotify’s top developers no longer write code but instead supervise AI-generated code, marking a strategic shift to accelerate platform enhancements through machine learning.