Spotify Stock Eyes Rebound After AI ‘Prompted Playlist’ Launch, Goldman Upgrades To Buy

• Goldman Sachs upgraded Spotify to ‘Buy’ from ‘Neutral’ but cut its price target to $700 from $735.
• The firm said the company was well-positioned to benefit in the long term from steady increases in the Premium subscription price.
• Spotify on Thursday announced the launch of “prompted playlist,” which allows a user to describe exactly what they want to listen to and generate a playlist informed by the customer’s listening history.

Spotify Technology shares rose 1.5% in after-hours trading on Thursday and drew increased retail attention after the company rolled out an artificial intelligence-powered feature, as well as witnessed a Wall Street cheer.   

The streaming platform has been trying to attract more paid users and has invested heavily to introduce new features and improve the listening experience for customers.

If after-market gains hold into Friday’s trading, the stock is set to snap a two-day losing streak. SPOT stock has fallen more than 14% so far this year, following a 30% jump in 2025.

Wall Street View

Goldman Sachs upgraded Spotify to ‘Buy’ from ‘Neutral’ but slashed the price target on the company to $700, down from $735, according to TheFly. The current price target still implies a 40% upside from the last closing price of $498.64.

The firm said it now sees a more compelling risk-to-reward for Spotify's shares in its next quarterly report following the recent selloff. In January, the company said it would increase the monthly premium subscription plan by $1 to $12.99 in the United States, Estonia, and Latvia markets.

Spotify’s shares have since been punished, but Goldman Sachs said the company was well-positioned to benefit in the long term from steady Premium subscription price increases, the introduction of new premium pricing tiers, and monthly active user growth.

Goldman said it sees Spotify's advertising revenue growth accelerating in 2026 and beyond, and the company's "long-term secular growth themes" are underappreciated at current share levels.

New AI Feature

Spotify on Thursday announced the launch of “prompted playlist,” which allows a user to describe exactly what they want to listen to and generate a playlist informed by the customer’s listening history and what’s happening in music right now.

The company said that in December 2025, it began testing “prompted playlist” with premium listeners in New Zealand, and users were quick to get creative. “Listeners are using prompts to bring back songs tied to specific moments, like late nights during the winter, while filtering out tracks they’ve overplayed recently,” Spotify said.

Spotify said that it was now introducing “prompted playlist” to more premium listeners in beta across the U.S. and Canada.

What Is Retail Thinking?

Retail sentiment on Spotify remained unchanged in the ‘bullish’ territory compared to a day ago, with message volumes at ‘high’ levels, according to data from Stocktwits.

Shares of Spotify have declined more than 2% in the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: Tesla Stock Rips To Best Day In 2 Months After Robotaxis Go Fully Driverless in Austin — Analysts Get More Bullish Now

Share

·

Add us on