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Yahoo
03-08-2025
- Business
- Yahoo
This Super Streaming Stock Plunged 18% in July. Is It a Buy, Sell, or Hold for the Rest of 2025?
Key Points Spotify stock has soared by 80% over the past year, and it was trading at fresh record highs as recently as June. However, the stock declined by 18% in July after the company reported a disappointing set of revenue and earnings results for the second quarter. Spotify stock is still quite expensive, but there might be an opportunity here for investors who are looking beyond 2025. 10 stocks we like better than Spotify Technology › According to Luminate, a research company for the entertainment industry, 65% of all global audio music streams happen on Spotify (NYSE: SPOT), making it the largest platform of its kind. Its dominance has proven very rewarding for investors, who have enjoyed a gain of 80% in its stock price over the last year alone. But Spotify stock sank by 18% during July, as the company's operating results for the second quarter of 2025 (which ended on June 30) fell short of expectations in a couple of key areas. Should investors buy the dip, or is it safer to sit on the sidelines for now? Spotify is a leader when it comes to innovation The majority of music streaming services offer almost identical content catalogs, so they can only compete with one another by charging lower prices, developing better features, or by investing in other content formats. Spotify is heavily focused on the latter two differentiators. On the technology side, Spotify is betting big on artificial intelligence (AI). In 2023, it introduced a feature called AI DJ, which learns what type of music each listener enjoys, and then plays them similar content while delivering commentary through a software-generated voiceover. In May of this year, the company enhanced the feature by adding voice requests, so users can steer the DJ in a different direction when their mood or their environment changes. AI Playlist is another unique tool Spotify developed. Users can type in a simple prompt and this feature will produce a complete playlist of tracks to match. A prompt can be anything, whether it be a particular feeling, a users' favorite color, or a specific instruction. Naturally, more detail will yield better results. On the content side, Spotify is one of the world's largest platforms for audio podcasts. It also made a huge push last year to encourage creators to make video podcasts because they drive more engagement, and they have answered the call by uploading more than 430,000 so far. Spotify says video consumption is growing 20 times faster than audio consumption this year, and the number of users who have streamed a video podcast is up 65% to 350 million compared to this time in 2024. Spotify's revenue and operating profit fell short of expectations in Q2 Spotify had 276 million paying subscribers at the end of the second quarter, in addition to 433 million free users, which it monetizes through advertising. The premium subscriber base grew faster than the free user base, which was good news because these customers accounted for 89% of the company's revenue. On that note, Spotify's total revenue came in at $4.8 billion for the quarter, which was up 10% compared to the year-ago period, but it was below management's forecast of $4.9 billion. Part of the shortfall was attributable to the company's advertising revenue, which shrank by 1% year over year. CEO Daniel Ek said Spotify was moving too slowly on the execution front, so it's taking longer than expected to see improvements from some of the innovations in its ads business. However, he said there are some positive signs that could set the stage for a strong 2026. Spotify's weaker-than-expected revenue had implications for its profitability during the quarter. It generated $464 million in operating income, which was well below management's guidance of $615 million -- however, it still represented a whopping 53% growth compared to the year-ago period, so the result wasn't a total disappointment. Is Spotify stock a buy, sell, or hold from here? Spotify is a great business with a stellar track record of success, so one weak quarter is unlikely to change the company's positive long-term trajectory. However, it's clearly affecting the price investors are willing to pay for its stock, given the 18% decline in July. Spotify stock is still trading at an elevated price-to-sales (P/S) ratio of 7.2, a whopping 75% premium to its long-term average of 4.1 dating back to its initial public offering (IPO) in 2018. Therefore, despite last month's decline, it might still be overvalued: As a result, investors looking for short-term gains should probably sit this one out. But those willing to hold onto the stock for the long term could do well if they buy the recent dip, because according to a forecast issued by Daniel Ek in 2022, Spotify could reach $100 billion in annual revenue by 2032. That would be a fivefold increase from where Wall Street expects Spotify's 2025 revenue to come in (according to Yahoo! Finance), which leaves plenty of room for upside in its stock over the next seven years or so. Do the experts think Spotify Technology is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Spotify Technology make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,019% vs. just 178% for the S&P — that is beating the market by 841.12%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Spotify Technology. The Motley Fool has a disclosure policy. This Super Streaming Stock Plunged 18% in July. Is It a Buy, Sell, or Hold for the Rest of 2025? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNET
24-06-2025
- Entertainment
- CNET
I Tried Using These 2 AI Tools to DJ My Parties. A Real Person Is Better
DJs provide a special service. They use fancy-pants equipment and deep knowledge of beats to sway crowds and elevate vibes to the maximum, thanks to years of experience under their belts in making booties shake. Getting into the groove at a party is all about the music. Rock, punk and R&B rhythms can be mixed seamlessly with everything from classical jazz to hardcore gangster rap by the right DJ, and a kicking music selection can take the function from fun get-together to all-night rager. I tested a few apps and services, including Spotify's AI DJ and the music streaming service's new verbal request feature. This feature allows you to ask the artificial intelligence embedded in the app for mixes based on artists, genres or even just pure vibes. Here's how to use AI to DJ any party, any time, with zero notice. Spotify AI DJ with voice requests DJs are notorious for their lack of noblesse oblige when party-goers make requests for specific songs and genres in the middle of their sacred sets. You could eff around and find out real quick that the DJ in the club doesn't care for your musical tastes, so using Spotify's AI DJ and making requests via voice feels downright decadent. The best way to use Spotify's AI DJ is to set your playback in the app settings to Crossfade, which allows you to vibe seamlessly with no breaks between tracks. The AI DJ can either automatically create a custom, dynamic playlist from your verbal instructions or use a premade playlist you've selected, which can then be altered on a whim. When I tested it out, Spotify's AI DJ did not miss with the selections, and verbal inputs can be as wild as you want or as subtle as you need in the moment. I tested the app on a day-drinking endeavor at home with a few friends, and the AI DJ easily moved between several different moods while incorporating extremely specific criteria. But Spotify's AI DJ doesn't hype the crowd or change the vibe at just the right time to prevent the engagement brunch from going sideways. It also doesn't use any fancy transitions or mixing like a real DJ would. More than simple song selection In pursuit of that true DJ experience, I tried Djay, a 2024 Apple Design Award winner, which claims to use AI in some way to automatically generate DJ sets with full, fancy transitions from your favorite songs on Apple Music. The process of getting Djay set up could arguably be a little challenging if you don't have Apple Music already on tap and your password management is trash, but things went smoothly after the five minutes it took to load all my saved rumpshakers into Apple Music so Djay could access everything. Djay / Screenshot by CNET Despite promising to automate the experience of a real DJ set with AI that "intelligently identifies rhythmic patterns including the best intro and outro sections of songs to keep the music flowing," I found the Djay app to be deeply underwhelming. djay / Screenshot by CNET Transitions seemed to be limited to crossfades, and the song matching was simple-minded and often jarring, with one track fading into another in a clunky, haphazard manner. If there is an AI at the heart of the automixing in Djay, its intelligence may be a matter of opinion instead of an observable fact. If that sounds harsh, it's nothing compared to the crassness of simply slapping one Al Green song next to another with a clumsy fade up and out in between and calling it "intelligent." Bottom line: I couldn't find a replacement for a real-time, high-functioning AI DJ that can automatically adjust to room vibes and offer specific sound solutions, but Spotify's AI DJ with the new voice request feature comes close. If you're looking for a DJ to turn up the lit factor on your next party with wild remixes, surprising mashups and satisfying transitions, a real person on the ones and twos is your best bet for now.
Yahoo
29-05-2025
- Business
- Yahoo
SPOT vs. PATH: Which Tech Stock Possess Stronger Growth Potential?
Both Spotify Technology S.A. SPOT and UiPath PATH are prominent software-driven tech stocks. SPOT is a leading personalized audio streaming and content platform, while PATH focuses on robotic process automation (RPA). Despite operating in different niches, both companies are linked by AI-backed growth narratives. Our comparative analysis will help investors figure out the tech stock that offers a more optimistic growth prospect. Spotify Technology's AI integration has aided its growth trajectory, evidenced by its improving key performance indicators. By the end of March 2025, the company added 3 million monthly active users (MAUs) and the count increased 10% year over year. Similarly, premium subscriber count increased by 5 million by the end of March and grew 12% year over year. This performance shines a light on AI's ability to create bespoke and engaging user experiences, elevating its business performance. SPOT has tactfully incorporated AI into its recommendation engines. The algorithms are subjected to analyze consumer habits, allowing the company to generate hyper-personalized features such as Discover Weekly, Release Radar and Daily Mixes. These playlists are driving user engagement by increasing time spent on the platform, leading to higher retention and a greater probability of a free user converting into a premium subscriber. Apart from recommendations, AI facilitates an annual marketing campaign — Spotify Wrapped — a user recap feature that provides an individualized summary of user's listening habits from the past year. This feature acts as an organic marketing tool and contributes significantly toward user acquisition and brand visibility due to its virality. Moving on, ad-supported MAUs increased 9% year over year in the first quarter of 2025. AI is a significant driver behind this growth, helping the company optimize target advertising and enhancing ad revenues. Finally, AI DJ and AI Playlist are a few of the company's AI-led innovations that demonstrate commitment to strengthening user interaction. This ultimately improves user retention and paves the path for prolonged growth in the competitive market. PATH, a global player in the RPA domain, leverages AI to fuel its growth, transforming traditional automation into an intelligent one. The strategic collaboration of AI has expanded the scope of processes that can be automated, supporting its growth trajectory positively. In fiscal 2025, the company registered annual recurring revenues (ARR) of $1.7 billion, increasing 14% year over year. Also, $424 in revenues was recorded in the fourth quarter of fiscal 2025, rising 5% from the year-ago quarter. Banking on sophisticated AI-powered solutions, the company has been able to generate strong ARR, indicating a healthy recurring stream of revenues and customer retention. Furthermore, the dollar-based net retention rate hovered at 110%, further bolstering PATH's success in broadening its customer base, which is a direct benefit of its AI-backed offerings. The company has introduced intelligent document processing, communications mining and computer vision to automate unstructured and complex tasks that RPA cannot handle by itself. This agentic automation, which allows AI agents to work alongside robots, generates a higher return on investment for clients by enabling businesses to tackle complicated workflows. For instance, the recent acquisition of Peak aims to strengthen PATH's vertical AI solutions strategy by accelerating AI adoption in retail and manufacturing sectors. Acquisitions as such and AI-led innovations backed by substantial R&D investment are instrumental in retaining market leadership and capitalizing on the rising demand for enterprise-wide AI transformation. The Zacks Consensus Estimate for Spotify Technology's 2025 sales is pegged at $19.9 billion, suggesting 17.4% year-over-year growth. The consensus estimate for earnings is pegged at $9.88, indicating a 66.1% rise from the preceding year's actual. Three estimates for 2025 have moved north in the past 60 days versus four southward revisions. Image Source: Zacks Investment Research The Zacks Consensus Estimate for UiPath's 2025 sales is pegged at $1.5 billion, implying 6.7% year-over-year growth. The consensus estimate for earnings is pegged at 52 cents per share, indicating a 1.9% year-over-year decline. No estimate for 2025 has moved north in the past 60 days versus two southward revisions. Image Source: Zacks Investment Research Spotify Technology is currently trading at a forward 12-month Price/Sales ratio of 6.45X, which is higher than the 12-month median of 4.83X, indicating an overvaluation. UiPath appears slightly overvalued with its 12-month Price/Sales ratio of 4.56X, which is marginally above the 12-month median of 4.53X. While both stocks are trading at a premium compared with their historical valuations, PATH is priced attractively from a valuation standpoint, suggesting greater breadth for expansion. Image Source: Zacks Investment Research While both SPOT and PATH rely heavily on AI to gain a competitive advantage, Spotify Technologies' near-term prospects appear brighter. SPOT's excellent user growth and impressive financial performance paint a detailed picture of a better near-term potential. That being said, we do acknowledge PATH's strength in enterprise automation and its lower valuation compared with Spotify Technology. However, SPOT is a fundamentally stronger stock than UiPath, with a remarkably higher earnings growth outlook, giving investors greater confidence to bet on its growth. SPOT and PATH have a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report UiPath, Inc. (PATH) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Hindustan Times
15-05-2025
- Entertainment
- Hindustan Times
Spotify's AI DJ now takes voice requests for music picks: Here's how it works
Spotify has expanded its AI DJ feature with new voice command support, offering users a more interactive way to influence their music playlists. Initially launched in 2023, the AI DJ was designed to generate playlists based on individual listening patterns and habits. The latest feature allows users to make direct voice requests to shape their listening experience, and it is now available in over 60 countries, although India is not yet included. With this update, 'Premium' subscribers can talk to the DJ and request music tailored to a particular genre, artist, mood, or activity. For example, users can say phrases like 'play some electronic beats for my morning workout' or 'suggest some good romantic songs for a rainy day.' The system responds by adjusting the playlist to deliver songs that match the request and the listener's past behaviour. Also read: How to quietly limit someone on Instagram without blocking, unfollowing, or causing drama Also read: Vivo V50 Elite Edition teased with Zeiss branding and sound upgrades- Here's what we know Furthermore, Spotify has confirmed that the feature can handle a range of voice prompts, including requests for unfamiliar songs or specific types of music. Users might say, 'play rock bands I haven't heard before' or 'give me indie tracks for relaxing at night.' The feature aims to make it easier for listeners to personalise music without navigating multiple menus or search filters. Also read: 5 Essential cloud tools that let you work seamlessly across devices The DJ works through a combination of artificial intelligence and contributions from Spotify's global team of music editors. The service selects music by analysing listening history, identifying patterns, and including both new releases and older tracks that users may have liked in the past. The voice used in the DJ feature is created by Xavier 'X' Jernigan, Spotify's Head of Cultural Partnerships, to create a more conversational and familiar tone. Spotify also reports that users have shown interest in the natural voice delivery, which aims to make interactions more fluid. Despite the current limitations, such as the inability to handle audiobook or podcast requests, the company continues to test the feature in beta mode and plans future improvements.
Tom's Guide
14-05-2025
- Entertainment
- Tom's Guide
Spotify's AI DJ now takes requests — here's how it works
Introduced in 2023, Spotify's AI DJ feature has some good things and a few drawbacks, and now the tool is getting its first significant upgrade. Starting today (May 13), the AI DJ can take your requests. Beyond curating a personalized listening experience (with some radio DJ-esque commentary), now you can use voice prompts to change your tunes to a genre you're in the mood for, or a vibe like summer jams. As an example, you could say, "Give me some electronic beats for a midday run," and the DJ will pull up something motivating for your run. According to Spotify, the AI DJ has become very popular in the last year, and many people have apparently requested the ability to request and get more control over their listening sessions. Giving the DJ tool a little more control is a nice feature, especially since one of the flaws we found was that sometimes it won't recommend new music, instead filtering through tracks and genres we already like without highlighting the latest singles. As my colleague Malcolm McMilan said in 2023, "I've even thought about trying to reset my Spotify algorithm by unliking everything and starting fresh because I feel Spotify only recommends things I'll like. And unfortunately, that problem is often exacerbated when using AI DJ." Hopefully, this helps us freshen things up a bit. Get instant access to breaking news, the hottest reviews, great deals and helpful tips. AI DJ is only available to Premium subscribers, and for now, only in 60 countries and does require you to speak English to use the new voice prompts tool. Fortunately, though, if you meet the qualifications, it's pretty simple to use. Press play to start the DJ When you're ready to switch the music up find the DJ button in the right-hand corner. A beep will sound when the tool is ready. From there, use your voice to ask the AI DJ for a specific kind of music. Hold the DJ button to switch it up or make new requests. If you want to change the mood but don't have a prompt, a quick tap of the DJ button will skip to the next section. Spotify noted that the new feature is still in beta, so you can't use it for non-music audio like audiobooks or podcasts. Again, you need to subscribe to Premium to access the AI DJ. Plans for an individual cost $11.99 a month and go up to $19.99 a month for a family plan.
