Spotify Is a Morgan Stanley Top Pick. There’s More Room for Growth.

Spotify stock has gained 77% over the last 12 months. (Antony Jones / Getty Images for Spotify)

Key Points

• Morgan Stanley named Spotify a top media and entertainment stock pick, citing potential price increases, AI, and new content as growth drivers.
• An analyst reiterated an Overweight rating and an $800 price target for Spotify, implying an 18% increase from its Monday closing price.
• Spotify’s stock has gained 53% in 2025 and 77% over the last 12 months, outperforming the S&P 500, with shares up 1.9% to $688 in afternoon trading.

Spotify Technology was climbing Tuesday after a Morgan Stanley analyst named the music streaming platform a top media and entertainment stock pick.

In a research note Monday night, Benjamin Swinburne cited potential future price increases, artificial intelligence, and new content as possible near-term drivers of revenue and subscriber growth.

“Having added significant value to its free and Premium tiers, Spotify in our view kicked off a new pricing cycle this Fall and is poised to accelerate growth into next year,” Swinburne wrote.

He reiterated an Overweight rating and $800 price target on the stock. That implies an 18% increase from its closing price of $675.53 on Monday.

Swinburne’s move of Spotify to his top pick list comes after the stock has had a notable run this year, gaining 53% in 2025 and 77% over the last 12 months, far outperforming the S&P 500 . Even though the company reported a surprise second-quarter loss in July, some investors continue to bet subscriber numbers and revenue will keep growing.

Swinburne believes that is possible as Spotify leans into AI upgrades and brings in new content. The analyst is also optimistic Spotify can convince free subscribers to pay as the company “continues to add new features and functionality to its Premium tier.”

Revenue growth is possible with price increases, and Spotify announced price hikes in August for premium subscribers in multiple markets across South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region.

Shares of Spotify were up 1.9% to $688 in afternoon trading.

Write to Angela Palumbo at angela.palumbo@dowjones.com