Spotify Technology S.A. (SPOT) shares are soaring 5.06% in Wednesday's intraday trading session, buoyed by positive analyst coverage and strong fundamentals. The music streaming giant's stock is gaining momentum as Wall Street expresses confidence in its growth prospects and profitability.

Bernstein has initiated coverage of the U.S. entertainment sector, giving Spotify an Outperform rating. This vote of confidence comes as the company continues to demonstrate its ability to monetize its large user base and improve its bottom line. Additionally, JPMorgan has maintained its Overweight rating on Spotify and raised its price target to $730 from $670, further fueling investor optimism.

Spotify's recent success is attributed to its strong competitive moat, improving fundamentals, and capable management. The company has consistently delivered profits in recent quarters, with net income ranging from $200 million to $300 million. As Spotify continues to focus on profitability while maintaining growth, investors are increasingly viewing it as a top tech stock with excellent prospects in the evolving digital entertainment landscape.