Bull-Bear Feedback: Positive on the Story, But AI Remixing Questions Remain

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Bull-Bear Feedback: Positive on the Story, But AI Remixing Questions Remain

USA | Internet

Spotify EquityJulyResearch8, 2026

FLASH NOTEBull-Bear Feedback: Positive on the Story, But AI

RATING BUYRemixing Questions Remain

PRICE $493.95^

We summarize key bull and bear views on SPOT based on our latest investor

conversations and a recent debate we hosted. In our convos, most investors PRICE TARGET | % TO PT $600.00 | +21%

remain positive on the ARPU story and medium-term upside, but over the 52W HIGH-LOW $748.30 - $405.00

shorter term some investors view SPOT as a near-term laggard given a less FLOAT (%) | ADV MM (USD) 72.3% | 1,003.86

compelling Q2 EPS setup and an AI remixing opportunity where user adoption MARKET CAP $103.4B

is unknown. Reiterate Buy and $600 PT. TICKER SPOT ^Prior trading day's closing price unless otherwise

noted.

Overall positioning feels more mixed than earlier in the year. Most investors remain positive on

the fundamentals and mid-term outlook, particularly the ARPU trajectory and potential for upside

vs. Street estimates that bake in limited contribution from new products. However, an emerging

cohort of shorter duration investors views SPOT as a relative underperformer near term, reflecting

less enthusiasm around the Q2 EPS setup and the view that AI remixing adoption is unclear.

Bulls:

Near-term cost and marketing investment reflected in Street estimates, while ARPU upside•

from new products is not. Favorable 2027 setup driven by normalized cost growth, potential

price increases, and minimal contribution from paid features in consensus creates room for

upward revisions.

Cannot simultaneously argue SPOT is an AI loser to Suno or YouTube Music while assuming•

limited adoption of SPOT's own AI products. Either consumers want AI-powered music