New York, Feb 27, 2026, 06:30 ET — Premarket
- Spotify shares slipped in premarket trading, pulling back after Thursday’s surge that followed an upgrade from Arete Research.
- Arete highlighted better Premium margins and dismissed concerns about AI disruption risk.
- Friday’s U.S. data is in focus for traders, along with the upcoming earnings window later this spring.
Shares of Spotify Technology S.A. slipped 0.3% to $494.06 before the bell, following a 7.0% surge on Thursday that left them at $495.65 at the close.
Spotify’s latest move has reignited an old debate: whether the company can keep hiking prices and keep growing, all while defending its gross margin in a streaming landscape known for its volatility.
The debate is hitting a market that’s already twitchy over artificial intelligence’s role as a business disruptor. “There continues to be this… back and forth” over who stands to lose and who comes out ahead from AI, Kristina Hooper, chief market strategist at Man Group, told Reuters. Reuters
Arete Research bumped Spotify up to Buy from Neutral, assigning a $586 target and pointing to improving Premium gross margins, TheFly reported. The analysts noted that AI disruption risk looks “minimal.” They’re also anticipating “modest” price increases every 18 months. TipRanks
Spotify shares jumped 6.99% in the previous session, changing hands anywhere from $464.05 up to $498.99.
TipRanks data showed Arete dropped its price target to $586, down from $680, but still bumped up its rating.
Spotify reported on Feb. 10 that Premium subscribers climbed 10% to 290 million, with monthly active users gaining 11% to 751 million. Gross margin ticked up to 33.1%. Operating income hit 701 million euros. Founder Daniel Ek, for his part, singled out “AI” as part of what he called the “next wave of technology shifts” poised to influence how people find audio and media. Spotify
Spotify’s push beyond music and podcasts has picked up pace lately. The company is now leaning harder into audiobooks and, in a fresh twist, letting users buy physical books directly in-app via a Bookshop.org tie-up. Reuters characterizes this as part of Spotify’s wider battle with big tech heavyweights, naming Apple and Amazon as key rivals.
Sentiment in tech names has wobbled outside the company lately, with Nvidia’s results coming up short for a market that had been “priced for perfection.” U.S. stock futures, Reuters noted, showed a mixed picture. Reuters
Yet Spotify faces a clear risk in the short term: raising prices might boost both revenue and margins, but there’s the chance users drop off if they’re not willing to pay more—particularly if rivals double down on bundles or their own hardware to retain listeners. AI copyright disputes and catalog headaches could surface just as things get tricky. Advertising, for its part, is still tightly tied to the health of the wider economy.
Investors have their eyes on Spotify’s Q1 numbers, which MarketScreener’s calendar pegs for release near April 28.
