This article first appeared on GuruFocus.
A growing sense of listener fatigue now stands as the central issue shaping Spotify’s (SPOT) strategy, as the streaming giant looks beyond piracy to keep users engaged. Many subscribers say automated recommendations feel repetitive, pushing Spotify’s new co-CEOs, Alex Norstrom and Gustav Soderstrom, to rethink how discovery works on the platform.
Their response centers on artificial intelligence that gives users more control, including tests of Prompted Playlists, which allow listeners to type conversational requests instead of relying solely on algorithms.
The push toward AI arrives as Spotify defends its business model against criticism from artists over payouts. Management argues that strong engagement expands the overall royalty pool, often comparing its scale with rivals such as Apple Music, owned by Apple (AAPL). Still, skepticism remains, especially after Spotify bundled audiobooks with music subscriptions, a move some in the industry see as controversial.
Beyond audio, Spotify aims to capture younger audiences by expanding into video. The company now promotes video podcasts, workouts, and music videos to compete for attention with platforms like TikTok and YouTube from Alphabet (NASDAQ:GOOGL).
At the same time, Spotify faces pressure over the rise of AI-generated music, betting that careful use of the technology can support creators rather than dilute the platform’s value.
Based on the one year price targets offered by 44 analysts, the average target price for Shopify Inc is $175.53 with a high estimate of $200.00 and a low estimate of $115.00. The average target implies a upside of +4.53% from the current price of $167.93.
Based on GuruFocus estimates, the estimated GF Value for Shopify Inc in one year is $152.62, suggesting a downside of -9.12% from the current price of $167.93. gf value is gurufocus’ estimate of the fair value that the stock should be traded at. it is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business’ performance. For deeper insights, visit the forecast page.
