Spotify set for growth, BofA says, citing new monetization tools

Tech Online Business & E-commerce Written by: Angela Harmantas 12:43 Fri 18 Sep 2026 --> Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government. She earned a Bachelor of... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Spotify Technology SA ( NYSE:SPOT ) View Price & Profile Spotify set for growth, BofA says, citing new monetization tools Published: 12:43 18 Sep 2026 EDT Bank of America is standing firmly behind streaming giant Spotify Technology SA (NYSE:SPOT) despite a rough week for the stock. In a note Friday, the bank reiterated its Buy rating and $685 price target, pushing back against any narrative that the company's growth story is faltering. BofA analysts called Spotify "a uniquely positioned multi product global platform" with a growing number of products and monetization levers. The bank pointed to the company's recent investor day, where Spotify laid out a shift in strategy from scaling its user base to monetizing and segmenting its existing market, while noting the company still has "an extremely long runway for subscriber growth." Analysts highlighted Spotify's expansion beyond its core music subscription business into audiobooks, video podcasts, fitness, ticketing, social features, AI-enabled experiences and deeper personalization. According to the note, Spotify is moving away from a one-size-fits-all subscription structure toward a more stratified product mix with variable, consumption-based pricing. The company is working to preserve the value of its core Premium tier while giving highly engaged users more ways to spend, through products such as Audiobooks+ and upcoming AI-driven music tools. BofA said most add-ons are expected to be margin accretive over time, and that the company's long-term financial model doesn't depend on any single new product succeeding at scale. The bank also said Spotify has established an operating model capable of supporting continued product investment alongside sustainable profit and free cash flow growth. While CY26 operating expenses are elevated, BofA expects that spending growth to moderate, and it sees ample opportunity for capital returns over the intermediate term. BofA also pointed to five drivers of longer-term profit growth: deeper subscriber penetration, price increases, new pricing tiers, advertising improvement in the second half of 2026, and new businesses. The bank noted audiobooks have yet to roll out across the large Spanish-speaking population, calling it an untapped opportunity. Continue reading