Spotify price target lowered to $600 from $700 at JPMorgan

JPMorgan lowered the firm’s price target on Spotify (SPOT) to $600 from $700 and keeps an Overweight rating on the shares. The firm attributes the post-earnings share selloff to Spotify’s lower Q2 profit outlook, second half-weighted subscriber growth, no significant AI product updates, and ongoing advertising challenges. Spotify is seeing increased inference and training costs ahead of launching more material AI products, the analyst tells investors in a research note. JPMorgan views the post-earnings selloff in the shares as overdone.