Is Spotify Technology (SPOT) the Least Risky Internet Stock to Invest In?

Insider Monkey
04-19

We recently published a list of Analysts Identify 10 Least Risky Internet Stocks To Invest In. In this article, we are going to take a look at where Spotify Technology S.A. (NYSE:SPOT) stands against other least risky internet stocks to invest in.

Investors usually do not waste any time reminding everyone of the dot-com bubble whenever the market takes a turn for the worse. With a recession imminent, some sectors have already corrected by so much that they are in bear market territory. Internet stocks belong to the same group.

Analysts at Evercore believe most of the internet stocks have very limited exposure to tariffs but still get hammered every time the market crashes on tariff developments. This means these stocks now present a favorable risk-to-reward ratio for investors.

We therefore decided to dig into the details of each of these internet stocks. To come up with our list of the 10 least risky internet stocks, we used the list compiled by Evercore’s analysts and ranked them by risk, with the least risky stock taking the number one spot.

A person wearing headphones listening to an audio streaming service.

Spotify Technology S.A. (NYSE:SPOT)

Spotify Technology S.A. (NYSE:SPOT) is an audio streaming subscription service provider. The company operates in the Ad-Supported and Premium segments. It also provides contract research and development, distribution and marketing, sales, and customer and other support services.

Spotify (NYSE:SPOT) has recently entered into a new multi-year agreement with the Warner Music Group. The agreement covers music publishing and recorded music to strengthen their partnership for online music offerings. The new deal introduces a direct licensing model in several additional countries, including the U.S. It will also expand access to Warner Music and video catalog.

At the start of this month, the firm also partnered with Magnite and Google to improve its advertising platform. The company introduced a new ad platform called “Spotify Ads Exchange” (SAX). This ad exchange platform enables advertisers to buy ads in a way that fits them best. To capture the greater share of the ad market, the company announced the launch of new artificial intelligence tools. Moreover, Spotify (NYSE:SPOT) also introduced “Spotify Gen AI Ads,” which creates high-quality audio ads with the help of AI.

“We’re bringing our decades-long AI expertise and innovative approach to our advertising partners to enable them to create scripts and voice-overs at no additional cost, making it easier than ever to create high-quality, scalable audio ads.”

Overall, SPOT ranks 2nd on our list of least risky internet stocks to invest in. While we acknowledge the potential of SPOT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that has gone up since the beginning of 2025, while popular AI stocks have lost around 25%. If you are looking for an AI stock that is more promising than SPOT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

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