Amazon’s Price Hike Validates Spotify’s Pricing Power and Supports 57.5% Upside Potential

Citi analyst Jason Bazinet has maintained their bullish stance on SPOT stock, giving a Buy rating on February 3.

Jason Bazinet has given his Buy rating due to a combination of factors tied to Spotify’s recent pricing power and competitive positioning. After Spotify increased U.S. subscription prices in January 2026, its individual plan became meaningfully more expensive than competing music services, raising concerns about potential subscriber losses and pressure on margins if rivals chose not to follow. Amazon Music’s subsequent decision to raise prices in both the U.S. and U.K., however, meaningfully reduces this risk by narrowing the price gap for Prime customers and fully aligning pricing for non-Prime users.

Bazinet views Amazon’s move as a strong signal that large digital service providers are willing to move in tandem on pricing, which should help protect industry economics and support Spotify’s profitability trajectory. With a major competitor now closer to Spotify’s price point and the prospect that other platforms may also lift prices, the backdrop for sustaining higher revenue per user looks more favorable. Taken together, these developments underpin his positive stance on the stock and support his conclusion that Spotify’s shares offer attractive upside potential from current levels, as reflected in his expected share price return estimate of 57.5%.

Bazinet covers the Communication Services sector, focusing on stocks such as AppLovin, Spotify, and Electronic Arts. According to TipRanks, Bazinet has an average return of 19.4% and a 66.18% success rate on recommended stocks.

In another report released on February 3, TipRanks – Google also reiterated a Buy rating on the stock with a $555.00 price target.