In its upcoming report, Spotify (SPOT) is predicted by Wall Street analysts to post quarterly earnings of $2.95 per share, reflecting an increase of 56.9% compared to the same period last year. Revenues are forecasted to be $5.16 billion, representing a year-over-year increase of 14%.The consensus EPS estimate for the quarter has been revised 7.5% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during t ...

Spotify Technology (NYSE:SPOT) is one of the stocks that should double by 2030. On January 30, Citi upgraded Spotify to Buy from Neutral with an unchanged price target of $650. The stock’s valuation is now attractive, and consensus estimates are beatable. Citi sees catalysts for Spotify shares due to price increases and accelerating buybacks. On January 27, MoffettNathanson began coverage of Spotify with a Neutral rating and a $487 price target. The firm noted that 15 years after the rise of music stream ...

While Spotify users face yet another price hike, book lovers have some exciting developments to look forward to that could help cushion the blow.Spotify announced several updates for its audiobook business on Thursday, notably its expansion into physical books. Users in the U.S. and the UK will soon be able to purchase physical copies of their favorite audiobooks directly through the app, marking a significant pivot for the once digital-only platform.  The company also introduced two features designed to m ...

Spotify said on Thursday it will begin selling physical books on its streaming platform through a partnership with online retailer Bookshop.org, marking an unexpected expansion beyond its audiobooks business. ...

The streaming service is joining with Bookshop.org to appeal to readers who read in multiple formats. ...

Core Insights - The fourth-quarter 2025 earnings for Internet stocks were significantly influenced by the acceleration of artificial intelligence (AI) adoption and substantial infrastructure investments, with major tech companies increasing capital expenditures, notably Meta's spending nearly doubling to $115-$135 billion for 2026 to support AI initiatives [1][4] - AI-driven demand led to strong revenue growth, particularly benefiting software analytics companies and cloud computing providers, while social media platforms saw revenue boosts from strong advertising demand and improved AI-powered recommendation algorithms [1][4] Company Performance - Meta Platforms (META) experienced a strong fourth-quarter performance, benefiting from increased AI integration across its services, which reach over 3.58 billion users daily, and an improved recommendation system that enhances user engagement [2] - Spotify Technology is expected to report fourth-quarter revenues of €4.5 billion, reflecting a 13% year-over-year growth, with significant user engagement driven by AI-driven personalization and a 54% surge in video podcast consumption [12] - Fastly anticipates fourth-quarter revenues between $159-$163 million, with a non-GAAP EPS of 4-8 cents, supported by accelerating security revenue and successful cross-sell initiatives [14] - Akamai Technologies is projected to benefit from robust growth in Cloud Infrastructure Services, with annual recurring revenue growth of 40-45%, driven by major contract wins and AI-driven demand [16] - Five9 expects sequential revenue growth towards a guided $297.7 million midpoint, fueled by strong backlog conversion and a 41% year-over-year surge in enterprise AI revenue [18] Market Dynamics - The digital advertising market showed resilience, benefiting from improved targeting technologies that enhanced return on investment for advertisers, while cloud infrastructure demand continued to expand as enterprises accelerated digital transformation initiatives [5] - The Federal Reserve's monetary easing cycle has supported growth-oriented Internet stocks, creating a more favorable financial environment, alongside seasonal market patterns that historically boost fourth-quarter performance [6] - Despite these positive dynamics, tariff-related uncertainties and economic deceleration concerns pose challenges, particularly for advertising-dependent business models and traditional software application companies [7][8]

Core Insights - Cathie Wood, CEO of Ark Invest, is recognized for her focus on disruptive companies, although her investment track record has faced criticism for long-term shareholder value erosion [1] Group 1: Spotify - Spotify started 2025 strong but faced challenges in the second half due to weak guidance and CEO departure [3] - Despite competition, Spotify maintains a leading position in the music streaming market with significant global market share [4] - The company benefits from a network effect, where partnerships with record labels and artists attract more users, and its podcast strategy could enhance long-term growth and margins [5] - Spotify aims to reach one billion monthly active users by 2030 and sees potential for expanding paying members, with many current users on ad-supported plans [6] - The company is enhancing its platform through AI initiatives, making it an attractive buy after recent poor performance [6] Group 2: Pinterest - Pinterest encountered challenges in 2025, with financial results below expectations due to tariffs impacting ad demand [7] - The platform's ecosystem is expanding, with monthly active users increasing by 12% year over year to 600 million in Q3 [7] - Pinterest is improving its monetization, with average revenue per user (ARPU) increasing, particularly in international markets [8]

The company was founded in 2006 and went public in 2018. In recent months, the shares have been sliding downward – SPOT has lost approximately 35% since peaking last June. A number of issues have caused investors to pull back, including Spotify’s listing of ‘ AI artists’ on its platform and some controversy regarding royalty payments to copyright holders, while slower revenue growth hasn’t helped matters either.The company offers free users a basic level of access and function, while paying subscribers can ...

Upgrades - BMO Capital upgraded Southwest (LUV) to Outperform from Market Perform with a price target of $57.50, up from $43, citing significant momentum and earnings upside to at least $4.00 per share in 2026 from 93 cents in 2025 [2] - Barclays upgraded Quest Diagnostics (DGX) to Overweight from Equal Weight with a price target of $210, up from $195, noting sustainable organic growth of 4% from fiscal 2024 to 2025 [3] - Guggenheim upgraded GE Vernova (GEV) to Buy from Neutral with a price target of $910, believing the market may underestimate cash generation potential and margin improvement in the electrification segment [4] - Wolfe Research upgraded Broadcom (AVGO) to Outperform from Peer Perform with a price target of $400, based on channel checks indicating the company will ship 7 million tensor processing units by 2028 [5] - Citi upgraded Spotify (SPOT) to Buy from Neutral with an unchanged price target of $650, stating the stock's valuation is now attractive and consensus estimates are beatable [5] Downgrades - HSBC downgraded Pinterest (PINS) to Hold from Buy with a price target of $24.90, down from $34.50, due to an abrupt jobs cut announcement indicating a softer near-term outlook [6] - Jefferies downgraded Kenvue (KVUE) to Hold from Buy with a price target of $18, down from $23, following shareholder approval for a merger with Kimberly-Clark [6] - Citizens downgraded SAP (SAP) to Market Perform from Outperform without a price target, citing disappointing Q4 sales results and a current cloud backlog growth of 25% versus the expected 26% [6] - D. Boral Capital downgraded Quince Therapeutics (QNCX) to Hold from Buy without a price target after negative results from a pivotal Phase 3 clinical trial [6] - Stifel downgraded Codere Online (CDRO) to Hold from Buy with a price target of $8.50, down from $9, believing the company's estimates need to reset due to a recently announced tax hike in Mexico [6]

Spotify said on Wednesday it had paid out more than $11 billion to the music industry last year, adding that it was the largest annual payment to music from a retailer in history. ...