Spotify stock jumps on Goldman upgrade as AI playlists and earnings draw closer

24 January 2026

New York, Jan 23, 2026, 19:38 EST — After-hours

Spotify shares gained 2.9% on Friday, pushing higher after a stretch of recent losses
Goldman Sachs raised the stock to a “Buy,” citing potential for margin improvement
Investors are focused on the AI playlist rollout and eagerly awaiting the next quarterly results due Feb. 10

Shares of Spotify Technology S.A. climbed 2.9% to finish at $513.21 on Friday. In after-hours trading, the stock slipped slightly, down 0.1% to $512.50.

This matters now since the stock reacts sharply to any changes in the pricing power debate, margins, and what follows the last major rally. With positioning tight, even one bullish call can still sway the tape.

Spotify is pushing to convince subscribers to pay rather than stick to free listening. On Thursday, it launched an AI-powered “prompted playlist” feature for premium users in the U.S. and Canada. This lets users create playlists through commands and set how often they refresh. “Listeners don’t just want Spotify to understand them. They want to actively shape their own experience,” said Molly Holder, vice president of product personalization. Reuters

Goldman analyst Eric Sheridan upgraded Spotify to Buy from Hold on Thursday, while lowering his price target to $700 from $735. That price implies roughly 39% upside from Thursday’s close. Sheridan noted the stock has dropped about 28% since early October amid concerns over revenue growth, pricing, and margins. He sees gross margin rising 80 to 100 basis points annually, driven by leverage on royalty payments, steady podcast costs, and higher ad revenue. On AI’s impact, Sheridan called it “too early to tell” how it will reshape streaming. Barron’s

As Monday approaches, traders are watching to see if the upgrade triggers fresh buying or fizzles out by the close. Spotify’s stock has been reacting to subtle shifts in sentiment, not just raw figures.

The broader market showed little support. The S&P 500 closed just slightly up on Friday, while the Dow slipped, leaving the focus on individual stock moves heading into the weekend.

Spotify’s battle isn’t slowing down. It’s still neck and neck with Apple Music, Amazon Music, and YouTube, all vying for listeners’ attention, ad spend, and subscriptions. That competition quickly surfaces in churn rates and advertising revenue.

Investors are watching closely for any indication that higher prices hold steady without driving users back to the free tier. They’ll also be tracking whether new features boost engagement enough to fuel ad revenue growth. Expect “ARPU,” or average revenue per user, to be a key metric under the microscope.

The risks are clear-cut. A softer consumer environment could dent discretionary subscriptions, the ad market might slow down sharply, and Spotify doesn’t have full control over royalty economics. Any misstep with product updates could lead to higher churn before it affects revenue.

Spotify announced it will release its fourth-quarter earnings before the market opens on Feb. 10 and host a Q&A session at 8:00 a.m. Eastern. Investors can submit questions through Slido. This call, along with early reactions to the February pricing adjustments, will be key near-term drivers for the stock.

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Khadija Saeed is a financial markets reporter at TS2.tech. Her coverage ranges from stocks and technology to emerging industries and developments across global markets. She studied economics and finance at the London School of Economics and worked in market research before becoming a financial journalist. Follow Khadija Saeed on Google News.

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