Spotify's AI-powered offerings drive growth, boosting user engagement and stock performance

Spotify’s AI integration has boosted user engagement, with 678 million monthly active users in the latest quarter. The AI DJ and Playlist features have driven growth, contributing to a 10% increase in MAU. The company’s focus on AI-driven offerings, including partnerships for audiobooks, aligns with the growing audiobooks market projected to increase at a 26.2% CAGR from 2025 to 2030.

Spotify’s stock performance has been impressive, soaring 128.8% in the past year and outperforming industry giants like Amazon and Apple. With a forward P/E ratio of 64.34X and a Value Score of F, Spotify’s earnings estimate for 2025 stands at $9.22 per share, suggesting 55% year-over-year growth. The company holds a Zacks Rank #3 (Hold) currently.

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Read more at Nasdaq: Can Spotify’s Reliance on AI-Powered Offerings Drive Growth?