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Shares of Spotify Technology NYSE: SPOT surged following the company’s latest earnings report, ending its two-quarter streak of post-earnings falls. Spotify shares gained 11%, good for the entertainment stock’s largest single-day gain since May, and leaving shares roughly flat on the year.
In contrast to what investors might have expected, Spotify’s sharp rise wasn’t due to the company smashing expectations on headline metrics. In fact, the company posted in-line or below consensus numbers on several key figures. Rather, it appears investors viewed Spotify’s longer-term trajectory favorably, with the company touting its AI initiatives while also expecting costs to moderate over the coming quarters.
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Spotify Posts Mixed Headline Metrics, Solid Underlying MetricsSpotify’s revenue during the quarter was 4.97 billion euros (approx. $5.58 billion), an increase of 14% year-over-year (YOY) on a constant-currency basis. This figure fell slightly short of estimates of $5.64 billion. However, adjusting for currency movements in relation to expectations, Spotify’s revenue was essentially in line with estimates.
Spotify’s diluted earnings per share (EPS) was $2.78, which was significantly below estimates of $3.16. In Q4 2026, Spotify expects to report revenue of approximately $5.82 billion, also slightly below estimates near $5.86 billion. In the context of Spotify’s lackluster headline numbers, it seems that investors put more weight on other metrics reported by the company.
Notably, the company’s premium subscribers increased 9% YOY to 306 million, one million ahead of its guidance. Additionally, gross margin expanded by 140 basis points YOY to 33%, which was 10 basis points higher than expected, while operating income was also above guidance. The company’s monthly active users (MAUs) increased by 11% YOY to 788 million, right in line with its target.
Next quarter, Spotify expects to add 30 million MAUs and 10 million premium subscribers, moving the total figures to around 818 million and 316 million, respectively.
Spotify Highlights AI Investments Including Its “Taste Model”Spotify also called out how it expects AI investments to benefit its growth over time, highlighting several key vectors. One of the most notable is the company’s use of AI in building and improving its “large taste model.”
Spotify uses trillions of data points on user listening habits and trains its taste model to predict what people will want to listen to next. The ultimate goal is to increase user engagement by helping people discover more content they enjoy. Spotify notes double-digit growth in discoveries, a leading indicator of how “exciting” users find Spotify. The company says that even as the taste model is in its early stages of rollout, it is already on track to add billions of hours of listening per year.
Potential Engagement Gains and Moderating Costs Could Benefit Margins Long TermIncreasing engagement is key for multiple reasons. First, it can make people more likely to keep their subscriptions, reducing churn. This is important because Spotify's user growth metrics subtract users lost from users gained, resulting in a “net” figure. By reducing churn, Spotify needs to add fewer new users to increase its overall user base, benefiting revenue growth over time.
This can also make people less likely to unsubscribe when Spotify increases prices, making it more likely to achieve the desired growth from price hikes. Price increases can account for a significant portion of Spotify’s growth. During the quarter, 7.5%, or around half of Spotify’s 15% constant currency premium revenue growth, came from average revenue per user (ARPU) expansion. The company notes that price increases were the primary driver behind ARPU expansion.
Despite not delivering particularly impressive growth metrics during the quarter, Spotify’s rally may be attributable to encouraging early signs from its AI initiatives and its cost trajectory. The firm expects a gross margin of 33.8% next quarter, up approximately 70 basis points YOY. It sees investments and costs moderating from Q3 to Q4, and into next year. Additionally, its AI investments have accelerated the shipment of new features, all while keeping its headcount flat, according to the firm.
These factors suggest that Spotify could realize the growth benefits from its AI investments while also protecting profitability, potentially setting the firm up for sustainable margin expansion long term.
By 2030, Spotify is targeting a gross margin of between 35% and 40%, which would be a 300 basis point to 800 basis point expansion compared to its 2025 gross margin of 32%. Spotify is also targeting an over 20% operating margin by 2030, which would be an over 700 basis point increase compared to 13% in 2025.
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Spotify Technology S.A. (NYSE:SPOT) on Thursday reported downbeat third-quarter earnings and revenue.
Spotify reported earnings of $2.85 per share, missing analysts’ consensus estimate of $3.11. Revenue rose 16% year over year to 4.97 billion euros ($5.72 billion), slightly below the consensus estimate of $5.73 billion.
Spotify expects fourth-quarter revenue of 5.2 billion euros, or approximately $5.985 billion, below analysts’ consensus estimate of $6.010 billion.
Spotify shares fell 1.1% to $577.30 in pre-market trading.
These analysts made changes to their price targets on Spotify following earnings announcement.
Cantor Fitzgerald analyst Deepak Mathivanan maintained the stock with a Neutral and raised the price target from $490 to $550. Rosenblatt analyst Barton Crockett maintained the stock with a Neutral and raised the price target from $527 to $576. Guggenheim analyst Michael Morris maintained the stock with a Buy and raised the price target from $575 to $650. Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
Spotify Technology (SPOT - Free Report) shares climbed 11% on Thursday after the music-streaming giant reported third-quarter results, highlighted by steady subscriber growth, record gross margins and an increasing focus on artificial intelligence (AI).
Revenue Growth and Record Gross MarginSpotify reported revenue of nearly €5 billion (about $5.6 billion), broadly in line with market expectations. Premium subscription revenue grew 17% year over year, while ad-supported revenue increased 10%.
Spotify came out with quarterly earnings of $2.85 per share, missing the Zacks Consensus Estimate of $3.1 per share while it fell from the year-ago level of $3.83 per share. Spotify posted revenues of $5.72 billion in September 2026, surpassing the Zacks Consensus Estimate of $5.70 billion.
However, gross margin reached a record 33%, slightly exceeding Wall Street's estimate of 32.9%. The stock surged 11% during Thursday's trading session. SPOT is now up by only 1.5% for the year 2026.
Subscriber Growth Remains StrongSpotify continued to expand its user base, with monthly active users rising 11% year over year to 788 million. The company expects monthly active users to reach 818 million in the fourth quarter, while revenue is projected to grow about 15%.
AI Becomes a Bigger Part of Spotify's StrategyArtificial intelligence (AI) is increasingly shaping Spotify's efforts to improve user engagement and personalization. During the quarter, the company introduced a taste profile feature for U.S. premium subscribers, offering insights into their musical preferences. It also integrated its service with Meta's Muse (read: Should You Tap Meta ETFs on Muse's Success or Wait on the Sidelines?).
However, investors questioned whether AI assistants could weaken Spotify's direct relationship with customers by comparing prices, services and usage across platforms.
Spotify co-CEO Gustav Söderström dismissed these concerns, drawing a parallel with Spotify's existing integrations with Google Maps and Waze. He noted that users have accessed Spotify through these services during their commutes for years without undermining its business model, as mentioned on Yahoo Finance.
Upbeat OutlookSpotify guided for €820 million of fourth-quarter operating income. The company’s fourth-quarter guidance is expected to be 33.8%, up from 33.1% a year earlier.
For the fourth quarter, Spotify expects 316 million subscribers and €5.2 billion of revenue. The revenue figure is a bit below the €5.24 billion analysts expected, according to Bloomberg's consensus, but the subscriber target is above it, per Tikr, as reported by Yahoo Finance.
Management also expects operating-expense growth to moderate, with that moderation continuing into 2027.
Spotify’s Premium ValuationShares are trading at a forward price-to-earnings (P/E) ratio of 38.45X, compared with 20.59X for the underlying Internet – Software industry. Its price-to-book and price-to-sales ratios are also elevated at 11.09X and 5.12X, respectively, compared with industry averages of 3.36X and 3.10X.
Price TargetBefore the earnings release, Spotify's average price target stood at $603.66, based on short-term forecasts from 32 analysts. The targets ranged from $420 to $720. Spotify shares closed at $583.66 on Oct. 22, 2026.
ETFs in Focus Spotify delivered mixed Q3 results, with strong subscriber growth and solid gross margins offset by an earnings miss. However, its AI-driven personalization strategy and improving profitability outlook could support future growth, making ETFs with SPOT exposure worth watching for investors seeking an entry point through a basket approach.
Spotify-heavy ETFs include the iShares MSCI Sweden ETF (EWD - Free Report) , First Trust Dow Jones International Internet ETF (FDNI - Free Report) and Global X Social Media ETF (SOCL - Free Report) .
Key Takeaways Spotify's ad growth rose to 9% in Q3 from 3% in each of the previous two quarters, as revenue beat estimates.SPOT sees 818 million monthly users and 316 million Premium subscribers in Q4, with a 33.8% gross margin.Spotify plans to take audiobooks to over 180 markets by year-end as expense growth moderates into 2027. Spotify Technology S.A. (SPOT - Free Report) used its third-quarter 2026 earnings call to emphasize improving advertising trends, subscriber resilience and a slower pace of expense growth.
Reported earnings of $2.85 per share missed the Zacks Consensus Estimate of $3.1, while revenues of $5.72 billion exceeded the $5.7 billion estimate. Management emphasized future engagement and profitability.
SPOT Projects More Growth and Higher Margins in Q4Chief financial officer Christian Luiga forecast 818 million monthly active users for the fourth quarter, an increase of 30 million, alongside 316 million Premium subscribers, reflecting 10 million net additions.
Luiga guided to €5.2 billion in fourth-quarter revenue, a 33.8% gross margin and €820 million in operating income. Pricing actions and Audiobooks+ add-ons support the revenue outlook.
He said that operating expense growth peaked in the third quarter and should moderate from the fourth quarter into 2027. He cautioned that seasonality and investment timing affect quarterly margins.
Spotify's Advertising Rebuild Gains TractionCo-CEO Alex Norström said that constant-currency advertising revenue growth accelerated to 9% in the third quarter from 3% in each of the preceding two quarters.
During questions about the advertising recovery, Norström pointed to easier automated buying, improved measurement and greater demand for audio advertisements. Podcast sponsorships contributed.
Luiga said that the company expects to move closer to double-digit advertising growth in the fourth quarter. He noted that advertising represents 10% of revenue, limiting its immediate companywide impact.
SPOT Positions AI Agents as a Distribution ChannelCo-CEO Gustav Söderström argued that integrations with third-party AI agents can broaden access without transferring Spotify's customer listening activity or proprietary taste data to those services.
Addressing concerns about becoming a replaceable back-end provider, Söderström explained that playback remains within Spotify and its recommendation systems continue to interpret user preferences.
He highlighted double-digit gains in content discovery from Spotify's large taste model. Almost 40 million Premium users listen to mixed playlists, with consumption up 90% quarter over quarter.
Spotify Takes Audiobooks Into New MarketsNorström described the expansion of audiobooks from 22 markets to more than 180 by year-end as an opportunity to increase listening days, retention and subscriber lifetime value.
During the discussion of rollout economics, he said audiobook listenership had increased 40%, and add-ons were showing encouraging monetization results. Luiga said initial expansion expenses are included in margin guidance.
Söderström also discussed bringing the Spotify Partner Program to 35 additional markets and introducing creator memberships, widening opportunities for creators to monetize dedicated audiences.
SPOT Refines Its Subscriber Conversion StrategyNorström emphasized durable subscriber demand across regions, while Luiga reported 306 million Premium subscribers and 788 million monthly active users at quarter-end.
Asked about changes to the free tier in India and Indonesia, Norström described adjustments to sign-up data, advertising load and device experiences aimed at improving retention and eventual monetization.
On pricing, Norström said that Spotify seeks to add value before monetizing through subscription increases, add-ons and advertising. The objective remains improving value to subscribers while expanding revenue opportunities.
Spotify Balances Buybacks With Strategic FlexibilityLuiga mentioned that Spotify repurchased 2.2 million shares for $1.1 billion through Oct. 21, offsetting employee-equity dilution and beginning to return excess cash to shareholders.
With €9.9 billion in cash and equivalents at quarter-end and no debt apart from lease liabilities, management retained flexibility for organic investment and acquisitions.
Norström reiterated that internal growth opportunities and selective acquisitions take priority over additional repurchases. Luiga emphasized opportunistic capital deployment.
SPOT Maintains Its Focus on Durable ExpansionAcross the call, management presented advertising improvement, broader content offerings and AI-powered personalization as ways to deepen engagement while protecting recurring subscription growth.
Executives also reinforced expense moderation and margin discipline extending into 2027. Their near-term focus remains delivering fourth-quarter targets while funding new products.
Zacks Rank and Style Scores Point to CautionSPOT carries a Zacks Rank #5 (Strong Sell), indicating an unfavorable earnings-estimate revision profile. Its Growth Score of A signals stronger growth characteristics, while the Value Score of D and Momentum score of D point to weaker readings in those categories.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The VGM Score of C reflects a middling combination of value, growth and momentum measures. The unfavorable Zacks Rank tempers the significance of the high Growth Score, and the rank can change as analyst earnings estimates are revised following the reported results.
3 Companies That Could Thrive While the Fed Holds Rates SteadySpotify Technology NYSE: SPOT reported third-quarter 2026 results that met or exceeded its guidance across revenue, monthly active users, subscribers, gross margin and operating income, while executives highlighted improving advertising growth, expanding audiobook availability and continued investment in artificial intelligence-driven features.
Co-CEO Alex Norström said revenue totaled about €5 billion, rising 14% year over year on a constant-currency basis and landing in line with the company’s forecast. Monthly active users reached 788 million, also in line with guidance, while Premium subscribers rose to 306 million, one million above the company’s outlook.
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MarketBeat Week in Review – 06/08 - 06/12Premium revenue increased 15% on a constant-currency basis, supported by 9% subscriber growth and a 7.5% increase in average revenue per user, according to CFO Christian Luiga. Gross margin reached 33%, exceeding guidance by 10 basis points and expanding about 140 basis points from the prior year.
“We made several commitments last quarter, and they’ve all landed either in line or better than expected,” Norström said.
Advertising Growth Accelerates Spotify's "North Star" Outlook Was Music to Investors EarsSpotify’s advertising business grew 9% in the third quarter on a constant-currency basis, accelerating from 3% growth in each of the first two quarters of the year. Norström said the improvement was driven by progress in rebuilding the company’s advertising technology and sales infrastructure, including growth in automated channels and podcast sponsorship products.
Luiga said automated biddable advertising represented 40% of the ad business and was a key contributor to the recovery. Spotify expects to continue progressing toward double-digit ad-supported revenue growth in the fourth quarter.
“It’s much better to have 10% revenue growth or above than having a low single-digit growth,” Luiga said when discussing the potential contribution of advertising to total company growth over time.
Norström said Spotify’s advertising opportunity remains supported by its brand, licensed content and listener engagement. The company is working to make its inventory easier to purchase through automation, improve advertiser measurement and simplify the creation of audio advertisements, he said.
Profitability, Cash Flow and Buybacks Operating income was €672 million, above the company’s guidance, producing an operating margin of 13.5%. The quarter included €22 million in social charges related to share-price movements, which were €13 million higher than Spotify had forecast.
Free cash flow totaled €735 million for the quarter, including unfavorable timing effects related to working capital and cash taxes. Over the past 12 months, Spotify generated €3.2 billion in free cash flow, Norström said.
Spotify had $9.9 billion in cash and cash equivalents at the end of the quarter and no debt other than lease liabilities. Through Oct. 21, the company had repurchased 2.2 million shares for $1.1 billion, Luiga said. The purchases offset dilution from employee equity programs and marked the beginning of returns of excess cash to shareholders.
Since resuming repurchases in August 2025, Spotify has bought back about 3 million shares, or roughly 1.5% of shares outstanding. Executives said the company’s capital-allocation priorities remain organic investment, selective acquisitions and opportunistic shareholder returns.
AI Features, Agent Integrations and Product Expansion Co-CEO Gustav Söderström said Spotify is positioning itself for what he described as an “agentic” AI environment, in which users can interact with media services through AI assistants. He said Spotify has integrated with services and devices including ChatGPT, Meta Ray-Bans and Meta’s Muse.
Söderström emphasized that Spotify retains the listening experience and does not send its music catalog or user data to third-party agents. Instead, he said, external agents can interact with Spotify, which then uses its own data and recommendation capabilities to determine playback and content recommendations.
The company said its AI investments have helped accelerate product development without increasing headcount. Söderström said Spotify is seeing double-digit gains in content discovery from early deployments of its large taste model, while users are spending more time in selected algorithmic experiences.
Spotify also cited adoption of interactive music features. Nearly 40 million Premium users listen to mixed playlists, Söderström said, with consumption of those playlists up 90% quarter over quarter. The company said user-generated mixing activity provides additional signals that can improve recommendations and its AI capabilities.
Meanwhile, Spotify plans to expand audiobooks to more than 180 markets by year-end, up from 22 markets. Norström said the company has seen audiobook listenership increase 40% over the prior three years and believes the category can increase active days, retention and customer lifetime value. The company also plans to expand its Spotify Partner Program to 35 additional markets during the fall and recently introduced Creator Memberships, allowing fans to support creators directly in exchange for member-only experiences.
Fourth-Quarter Outlook For the fourth quarter, Spotify forecast 818 million monthly active users, representing an increase of 30 million from the third quarter, and 316 million Premium subscribers, a net increase of 10 million.
The company expects fourth-quarter revenue of €5.2 billion, with year-over-year ARPU growth of roughly 4.5% to 5%. The forecast reflects recent price increases and performance from Audiobooks+ add-ons, partly offset by the comparison with prior-year pricing actions in more than 150 markets.
Spotify expects a fourth-quarter gross margin of 33.8%, about 70 basis points above the prior-year period, even as it funds the global audiobook expansion and broader availability of the Spotify Partner Program. For the full year, the company’s outlook implies gross-margin expansion of approximately 130 basis points compared with 2025.
Spotify forecast fourth-quarter operating income of €820 million. Luiga said operating-expense growth is expected to moderate meaningfully starting in the fourth quarter and continue declining into 2027, though the company did not provide formal 2027 guidance.
About Spotify Technology (NYSE:SPOT)Spotify Technology SA is an audio streaming company that operates the Spotify platform, offering users access to music, podcasts and audiobooks through internet-connected devices. Its catalog includes licensed recordings from music labels and artists, as well as podcasts and other audio content from creators and publishers.
Spotify provides both an ad-supported service and subscription-based Premium plans. Premium subscribers generally receive ad-free listening and additional features, while the advertising-supported service allows users to access content without a paid subscription.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Shares of Spotify Technology (SPOT +11.10%) soared on Thursday after the music streaming leader announced impressive growth metrics.
Image source: The Motley Fool.
Music fans are flocking to SpotifySpotify's monthly active users (MAUs) grew 11% year over year to 788 million in the third quarter.
The audio streaming platform is successfully enticing free users to become paying customers to access upgraded features, such as ad-free listening, offline downloads, and higher quality audio. Premium subscribers increased 9% to 306 million.
In all, Spotify's revenue climbed 16% to 5 billion euros, or roughly $5.6 billion.
SPOT Spotify Technology$583.66+$58.32 (+11.10%)
NYSE · As of 4:00 PM ET 10/22/26
Better still, Spotify is growing more profitable as it expands its subscriber base. Gross margin improved by 1.4 percentage points to 33%. That helped to drive its operating income up by 15% to 672 million euros ($754 million).
Management sees more gains aheadSpotify sees its MAUs and premium subscribers rising to 818 million and 316 million, respectively, in the fourth quarter. The company, in turn, expects to generate revenue of 5.2 billion euros and operating income of 820 million euros.
Spotify has a simple and effective formula for expansion. It continually seeks new ways to add value for listeners and artists, thereby attracting new users who then spend more time on its platform.
Spotify plans to roll out its audiobook offerings to over 180 markets by the end of the year. It's also launching new tools to help creators better monetize their work.
"Every time we expand what's on Spotify, we bring in new listeners and give existing ones more reasons to come back, almost every day," Co-CEO Alex Norstrom said.
Joe Tenebruso 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.
On October 22, 2026, Spotify Technology SA (SPOT) shares experienced a notable increase of 11.1%, bringing the current price to $583.66. This rise occurs within
On its third quarter of 2026 earnings call, held on Oct. 22, 2026, Spotify (SPOT +10.94%) announced total revenue reached 5 billion euros, up 14% at constant currency. Free cash flow reached 3.2 billion euros over the past 12 months. Three takeaways from management stand out for long-term investors.
1. Proprietary Taste Models Drive Content Discovery and User EngagementInvestments in artificial intelligence are improving recommendation quality across the platform. Better recommendations keep subscribers engaged longer and strengthen long-term user retention.
Our taste model investments are already paying off. Early deployments show double-digit gains in content discovery, and our users are spending more time in select algorithmic sets.
-- Christian Luiga, Chief Financial Officer2. Global Audiobook Rollout Expands Subscriber Value and Platform EngagementCatalog expansion beyond music increases daily platform usage among subscribers. Higher active days improve retention while creating new add-on revenue opportunities.
We have increased our audiobooks listenership by 40%. This is even before launching to the rest of the world. We have seen listening hours grow as well.
-- Alex Norström, Co-Chief Executive Officer3. Subscriber Base Scaling Shows Multiyear Growth DurabilityConsistent annual additions demonstrate broad appeal across developed and emerging markets. A growing base creates a compounding foundation for recurring subscription revenue.
When we went public in 2018, we had 71 million subscribers. Since then, every single year, we've been adding 25 million subs or more. This year, we expect to reach 316 million subscribers.
-- Alex Norström, Co-Chief Executive OfficerLooking AheadRevenue momentum accelerates across subscription and advertising channels, supported by lower operating expenses, or OpEx. The platform holds structural advantages in global distribution, proprietary listener taste data, and multi-format audio content, while focusing on margin expansion and capital return.
OpEx growth is now coming down meaningfully, and we expect that moderation to continue into 2027. We see that this year's incremental OpEx is driving multiple benefits to our business.
-- Christian Luiga, Chief Financial OfficerAs monetization deepens through add-on features and pricing power, compounding cash flow supports organic investments and share buybacks.
We remain confident in our path and expect another year of progress toward delivering on our 2030 goals. We are well-positioned to continue compounding growth, profitability, and free cash flow.
-- Christian Luiga, Chief Financial OfficerThe Motley Fool has positions in and recommends Spotify Technology. The Motley Fool has a disclosure policy.
Spotify had a strong third quarter, reaching 788 million monthly active users and generating nearly €5 billion (around $5.6 billion USD) in revenue. But the more interesting takeaway from its earnings call was how the company sees people listening to music in the future, and why the rise of AI agents could be good news for its business.
Co-CEO Gustav Söderström thinks the music streaming giant is particularly well-suited to this shift.
“Spotify is in one of the few categories that actually stands to thrive in the agentic age,” Söderström tells investors. “This is because agents excel at replacing and taking care of things people would rather not do. People love getting rid of chores. But entertainment is the opposite. Nobody asks an agent to ‘summarize a song’ for them.”
Instead of opening Spotify, searching for an artist, and building a playlist themselves, listeners could ask an AI assistant to do the work for them. They might want music for a run, a podcast about something they’ve been discussing with an AI, or an audiobook recap that picks up exactly where they left off.
Spotify wants to be the service those agents turn to, letting people discover music and interact with Spotify through conversations rather than just its own app. Notably, Spotify was the first music service to integrate with Meta’s Muse assistant, and it also integrates with ChatGPT and Claude.
“Our goal is to be the media service that you use from any agent, really turning the growth of agents into a tailwind rather than a headwind. That is exactly what we are seeing now. We are seeing really good adoption of Spotify inside these agents. While other companies are maybe trying to figure out what to do and many are leaning out, we are actually leaning in and participating in the growth instead of standing by the roadside and looking at it,” said Söderström.
The market is already showing signs of friction over how agents access third-party services. Amazon, for example, has blocked Meta’s Muse from shopping on its platform, illustrating how major players may restrict outside agents when questions arise around access, security, privacy, or commercial control.
Spotify’s pitch isn’t just that AI should just make entertainment easier to find. It should make the experience more personal, too.
Söderström describes Spotify today as “an intelligent media service encapsulated as an agent, whether you use it directly through our application or via another agent…Spotify is now an agent that you can not only click on in our app, but talk to, ask questions of, and instruct. We can do things today that no other media services can do,” he said.
“For example, you can ask Spotify to go through your listening history song by song back to 2008, picking your true favorites, beat-stretching them by speeding them up or down, and then sorting them by key and BPM. Then you can ask it to mix them together into the perfect running playlist at your exact cadence,” Söderström explained.
Spotify has years of listening history to draw on, including the artists people return to, the songs they skip, and the music they discover. That information can help it make recommendations that feel more personal than a generic playlist generated by an AI assistant that doesn’t know much about someone’s tastes.
However, Söderström also emphasized that Spotify isn’t sending its listener data to partners. Instead, the agent asks Spotify for something, and Spotify uses its own systems to reason about the request and choose what to play.
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Spotify Technology SA (NYSE:SPOT) increased revenue by 16% year-on-year to €5 billion in the third quarter, as subscriber growth and improving margins supported an operating income of €672 million.
Premium subscribers rose 9% to 306 million, while monthly active users increased 11% to 788 million, with subscriber growth recorded across every region.
Gross margin, the share of revenue remaining after direct costs, improved by 1.36 percentage points year on year to 33%, while operating income exceeded expectations.
Revenue increased by 14% on a constant-currency basis, which strips out the effects of exchange-rate movements to provide a clearer picture of underlying growth.
Spotify’s results reflect continued expansion beyond music streaming, with the company extending its audiobook offering, creator monetization services and personalized listening features.
The music-streaming company plans to expand audiobook access from 22 markets to more than 180 by the end of 2026, potentially reaching over 750 million people worldwide.
Spotify is also rolling out its Partner Program to more than 35 additional markets and Creator Memberships are launching across 34 markets.
Alex Norström, Spotify’s co-chief executive, said the business continued to grow while costs moderated, adding that the company saw further opportunities to expand its offering and attract listeners.
Co-chief executive Gustav Söderström said entertainment remained well suited to an era of artificial intelligence agents, arguing that people would continue to seek music, podcasts and books for enjoyment.
Spotify has also introduced features designed to give users greater control over recommendations, including Taste Profile, which allows eligible premium subscribers aged 18 and over in the United States to influence their personalized home feed.
Shares of Spotify were up over 8% in New York on Thursday morning.
Spotify confirmed the reports of its crackdown on Family Plan sharing during its third-quarter call with investors, calling its new method “a routine improvement” to its existing verification tools.
Over the past several days, reports had surfaced indicating that Spotify was rolling out a “QR code verification” method, where the app would prompt members on its Family Plan to verify they lived with the plan manager by scanning a QR code. This code appears on the plan manager’s phone, which the plan member then needs to scan with their own phone, according to Spotify’s support documentation.
Plan members have seven days to complete the QR code after getting a notification, which means they could be out of luck if they live outside the home and aren’t planning a return visit anytime soon. If the verification window is missed, they won’t be able to join another Family or Duo plan for 12 months, but would instead have to shift to an individual plan that they pay for themselves.
The move is meant to boost subscriptions to Spotify’s profitable Premium plans, rather than allowing adult children or friends who live apart from gaming the system to get a cheaper plan by splitting a Family Plan subscription.
During the earnings call, an investor asked a question about the crackdown and what it means, but Spotify co-CEO Alex Norström downplayed the change, calling it a “routine improvement,” not a “crackdown.”
“Family Plan has existed for a long while. It has been around for, I think it is now close to 12, 13 years in Spotify history, and it makes up a pretty significant proportion of our subscriber base,” said Norström. “As such, it is important for us to just make sure over time that we improve the verification methods that we have. There are certainly ways, over time, to find holes around it. As that happens, we figure out how to improve it over time,” he added.
The executive said that the company’s attempt to better verify its users is not something that would have an end date or would ever be complete, but would be considered an ongoing routine improvement.
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Spotify shares jumped 10% at $572 billion Thursday to a 10-month high as the music streaming giant hit 306 million premium subscribers in the September quarter (up 9% year on year) – one million ahead of forecasts, and with growth across all regions. It guided to another 10 million net ads in the current fourth quarter.
Q3 monthly active users (MAUs) came in at 788 million, up 11%.
Revenue jumped 16% year on year to €5 billion ($6.5 million), in line. Earnings skimmed forecasts, gross margins improved. Ads sales grew 9%, up from 3% in each of the previous two quarters. Spotify has low debt, which is reassuring at a time of higher interest rates, and a robust war chest.
The co-CEOs of the Stockholm-based global streamer talked up the company’s AI integration and successful push into audiobooks – which, in Sweden, are apparently almost as popular as music, they said. Spotify’s video podcast consumption is up over 140% since launch with more than 560 million users having streamed a video podcast on the platform. It recently re-upped with popular host and podcast The Joe Rogan Experience.
It has about 800 audiobook titles now and is expanding access to more than 180 markets by year end.
During the quarter, the company leaned in on using artificial intelligence to personalize listening, including a “taste profile” for U.S. premium users. It also launched an integration with Meta’s Muse to expand options for listeners.
“By connecting Muse to Spotify, listeners can ask their agent to play music, save songs to their library, build personalized playlists, find new books, podcasts and more,” the company said.
“It’s an agent you can talk to, ask Spotify to go through your listening history back many years and note your favorite listening and create a playlist. You can also ask Spotify who wrote and performed on each track,” elaborated co-CEO Gustav Söderström, adding, that company “actually stands to thrive in the agentic age.”
On the flip side, it announced yesterday it had taken down more than 50 million AI-generated slop and spam tracks out of recommendations over the past year — in addition to more than 75 million spammy tracks we’ve removed from our platform altogether for serious or repeated violations of our rules.
The Spotify Partner Program moved into 35 more markets, and the company launched new Creator Memberships.
“This was a quarter where we did what we said. We’ve built a strong business that keeps compounding, we invest when we see a path for growth, our costs are moderating, and there is more runway ahead,” said co-CEO Alex Norström.
Spotify (SPOT - Free Report) came out with quarterly earnings of $2.85 per share, missing the Zacks Consensus Estimate of $3.1 per share. This compares to earnings of $3.83 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -8.07%. A quarter ago, it was expected that this music-streaming service operator would post earnings of $3.27 per share when it actually produced earnings of $3.03, delivering a surprise of -7.34%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Spotify, which belongs to the Zacks Internet - Software industry, posted revenues of $5.72 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 0.32%. This compares to year-ago revenues of $4.99 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Spotify shares have lost about 9.5% since the beginning of the year versus the S&P 500's gain of 13.3%.
What's Next for Spotify?While Spotify has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Spotify was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.67 on $5.99 billion in revenues for the coming quarter and $13.66 on $22.38 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Weave Communications, Inc. (WEAV - Free Report) , has yet to report results for the quarter ended September 2026.
This company is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of +100%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Weave Communications, Inc.'s revenues are expected to be $69.23 million, up 12.9% from the year-ago quarter.
A third-quarter subscriber count that exceeded its own guidance has put Spotify Technology (NYSE:SPOT | SPOT Price Prediction) at the front of a soft media group. Spotify stock is at $579.
Spotify Technology shares SPOT rose on Thursday after the music streaming company forecast fourth-quarter operating income above Wall Street expectations, supported by subscriber growth and investments in artificial intelligence-powered features. The stock gained 8.6% in trading, outperforming a broader market decline driven by renewed concerns about AI spending and technology valuations.
For the quarter ended September 2026, Spotify (SPOT - Free Report) reported revenue of $5.72 billion, up 14.5% over the same period last year. EPS came in at $2.85, compared to $3.83 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $5.7 billion, representing a surprise of +0.32%. The company delivered an EPS surprise of -8.07%, with the consensus EPS estimate being $3.10.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Spotify performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Total Monthly Active Users (MAUs): 788 million versus 790.07 million estimated by five analysts on average.Premium Subscribers: 306 million versus the five-analyst average estimate of 305.06 million.Ad-Supported MAUs: 499 million versus the four-analyst average estimate of 499.83 million.View all Key Company Metrics for Spotify here>>>
Shares of Spotify have returned +2.9% over the past month versus the Zacks S&P 500 composite's no change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Spotify (SPOT - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Spotify currently has an average brokerage recommendation (ABR) of 1.67, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 35 brokerage firms. An ABR of 1.67 approximates between Strong Buy and Buy.
Of the 35 recommendations that derive the current ABR, 22 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 62.9% and 5.7% of all recommendations.
Brokerage Recommendation Trends for SPOT
Check price target & stock forecast for Spotify here>>>
The ABR suggests buying Spotify, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is SPOT Worth Investing In?Looking at the earnings estimate revisions for Spotify, the Zacks Consensus Estimate for the current year has declined 1.6% over the past month to $13.66.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Spotify. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for Spotify with a grain of salt.
Spotify Technology S.A. (NYSE: SPOT) has released its results for the third quarter of 2026 today. Please visit investors.spotify.com to view the Shareholder Deck and other supplemental materials.
As previously announced, the company will host a live question and answer session to discuss third quarter 2026 results at 8:00 a.m. Eastern Time. Alex Norström and Gustav Söderström, our Co-Chief Executive Officers, and Christian Luiga, our Chief Financial Officer, will be on hand to answer questions. Questions can be submitted by going to slido.com and using the code #SpotifyEarningsQ326.
What: Spotify Third Quarter 2026 Financial Results Q&A Webcast
When: Thursday, October 22, 2026
Time: 8:00 a.m. Eastern Time
Q3 2026 Update: https://investors.spotify.com/
Webcast: https://app.webinar.net/GkYa3LgEXm7
Slido Event Code: #SpotifyEarningsQ326
A live webcast of the earnings call will be accessible at investors.spotify.com and a recording of the webcast will be available following the session.
About Spotify Technology S.A.
Spotify’s platform revolutionized music listening forever when we launched in 2008. Today, more listeners than ever can discover, manage and enjoy over 100 million tracks, 8 million podcast titles, and 800,000 audiobooks in select markets on Spotify. We are the world’s most popular audio streaming subscription service with 788 million users, including 306 million subscribers across 184 markets.
View source version on businesswire.com: https://www.businesswire.com/news/home/20261022230545/en/
Disclosures
I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
NEW YORK--(BUSINESS WIRE)--Spotify Technology S.A. (NYSE: SPOT) has released its results for the third quarter of 2026 today. Please visit investors.spotify.com to view the Shareholder Deck and other supplemental materials. As previously announced, the company will host a live question and answer session to discuss third quarter 2026 results at 8:00 a.m. Eastern Time. Alex Norström and Gustav Söderström, our Co-Chief Executive Officers, and Christian Luiga, our Chief Financial Officer, will be.
Spotify (SPOT.N) forecast fourth-quarter profit above Wall Street estimates on Thursday, as the Swedish music streaming company bets on its AI-powered features to drive user growth in the crucial holiday season.
Shares of the company rose nearly 4% in premarket trading.
Investors have closely watched the company's profitability as it spends on AI to improve discovery and engagement to attract more users and fend off emerging music-generation rivals such as Suno and Udio.
Spotify expects operating income of €820 million ($920.53 million), compared with analysts' average estimate of €813.4 million, according to data compiled by LSEG.
The company's AI-powered features include AI DJ, which curates personalized music mixes with spoken commentary, and prompt-based playlists that let users describe a mood or listening preference to generate tailored selections.
"We've built a strong business that keeps compounding, we invest when we see a path for growth, our costs are moderating, and there is more runway ahead," co-CEO Alex Norstrom said in a statement.
In the third quarter, Spotify's operating income of €672 million came in line with Visible Alpha-compiled analysts' average estimate of €671.8 million.
It posted revenue of €4.97 billion in the three months ended September 30, compared with an LSEG-compiled estimate of €4.98 billion. It reported earnings per share of €2.48, compared with estimates of €2.80.
Spotify's monthly active users forecast of 818 million for the fourth quarter was marginally below Visible Alpha estimates of 819 million, while its outlook for about 10 million increase in premium subscribers to 316 million was above expectations of 314.7 million.
Its monthly active users grew 1% sequentially in the third quarter to reach 788 million.
Earlier this week, Spotify announced a licensing deal with music distributor Believe for its upcoming paid tool for fan-made AI covers and remixes. It has also signed licensing deals with Universal Music Group (UMG.AS), Merlin and Kobalt for the tool.
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Výsledky Spotify potvrdily stabilní růst služby i vysokou loajalitu uživatelů, ale zároveň naznačily, že firma stále hledá další významný zdroj příjmů mimo předplatné. Vedení proto sází na rozvoj audioknih, exkluzivních podcastů a nových AI nástrojů, které mají zvýšit zapojení uživatelů a posílit monetizaci platformy.
Spotify Technology navýšila ve třetím čtvrtletí počet měsíčních aktivních uživatelů oproti předchozímu kvartálu o 1 % na 788 milionů. Počet platících předplatitelů se zvýšil o 2 % na 306 milionů. Investoři očekávali 305 milionů platících zákazníků a celkem 788 milionů uživatelů, píše Bloomberg. Akcie v New Yorku rostou v pre-marketu přes 4 %.
Celkové tržby za tři měsíce končící v září vzrostly na 4,97 miliardy eur, to představuje meziroční nárůst o 16 %, což je o něco méně, než předpovídal trh (4,98 miliardy eur). Tržby z reklamy rostly pomaleji a dosáhly 482 milionů eur, čímž zaostaly za odhadem ve výši 484,8 milionu eur. Prodej reklamy je pro společnost dlouhodobě výzvou – firmě se nedaří tento segment proměnit v významný zdroj příjmů, a to přesto, že má více uživatelů využívajících bezplatnou verzi než platících předplatitelů. Hrubá marže ve třetím čtvrtletí dosáhla 33 %, což přesně odpovídá odhadům analytiků.
Pro čtvrté čtvrtletí společnost předpovídá tržby ve výši 5,2 miliardy eur a 818 milionů měsíčních uživatelů, kdy obě hodnoty víceméně odpovídají odhadům analytiků.
V uplynulém čtvrtletí Spotify oznámilo plány na rozšíření své nabídky audioknih. Audioknihy, které podle společnosti zvyšují tržby, zejména u velmi aktivních uživatelů („super users“), kteří si připlácejí za delší dobu poslechu, nyní přicházejí na nové trhy, včetně Španělska, Mexika a Norska.
Aktivity společnosti v oblasti podcastů, které se nyní stále více soustředí na omezený počet velkých pořadů, získaly nový impuls díky obnovení smlouvy s Joe Roganem. Spotify tím získalo práva na prodej reklamy v jeho podcastu, který zůstává nejpopulárnějším pořadem ve Spojených státech. Společnost rovněž spolupracuje s Amy Poehlerovou na jejím podcastu a uzavřela dohodu se společností Netflix o distribuci vybraných pořadů na této streamovací platformě.
Společnost pokračuje v uzavírání hudebních dohod s nahrávacími společnostmi a vydavateli, aby mohla vyvinout připravovaný nástroj pro remixování založený na umělé inteligenci. Ten uživatelům umožní si za příplatek upravovat skladby podle vlastních představ.
Blue Jean Financial LLC acquired a new stake in shares of Spotify Technology (NYSE:SPOT – Free Report) in the 3rd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor acquired 3,113 shares of the company’s stock, valued at approximately $1,517,000.
A number of other institutional investors have also recently made changes to their positions in SPOT. Pin Oak Investment Advisors Inc. bought a new stake in shares of Spotify Technology in the second quarter worth about $27,000. Portus Wealth Advisors LLC purchased a new stake in shares of Spotify Technology in the first quarter worth about $32,000. Whipplewood Advisors LLC boosted its stake in Spotify Technology by 423.1% during the first quarter. Whipplewood Advisors LLC now owns 68 shares of the company’s stock valued at $33,000 after buying an additional 55 shares during the last quarter. Palladiem LLC bought a new position in Spotify Technology during the first quarter valued at approximately $34,000. Finally, Tsfg LLC boosted its stake in Spotify Technology by 39.7% during the second quarter. Tsfg LLC now owns 81 shares of the company’s stock valued at $37,000 after buying an additional 23 shares during the last quarter. Hedge funds and other institutional investors own 84.09% of the company’s stock.
Spotify Technology Price Performance Shares of NYSE SPOT opened at $526.72 on Wednesday. The business’s 50 day moving average is $522.79 and its two-hundred day moving average is $496.36. Spotify Technology has a 1-year low of $405.00 and a 1-year high of $696.95. The stock has a market capitalization of $108.44 billion, a P/E ratio of 32.80, a PEG ratio of 1.60 and a beta of 1.61.
Spotify Technology (NYSE:SPOT – Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $3.03 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $3.16 by ($0.13). The company had revenue of $5.45 billion for the quarter, compared to analysts’ expectations of $5.47 billion. Spotify Technology had a net margin of 18.44% and a return on equity of 41.39%. The company’s revenue for the quarter was up 13.9% on a year-over-year basis. During the same quarter last year, the company earned ($0.42) earnings per share. As a group, equities research analysts anticipate that Spotify Technology will post 13.71 earnings per share for the current fiscal year. Insider Buying and Selling In related news, CEO Gustav Söderström sold 20,913 shares of the stock in a transaction on Monday, September 14th. The stock was sold at an average price of $544.19, for a total transaction of $11,380,645.47. Following the sale, the chief executive officer owned 20,025 shares in the company, valued at approximately $10,897,404.75. This represents a 51.08% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Alex Norström sold 5,436 shares of the firm’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $502.10, for a total value of $2,729,415.60. Following the completion of the sale, the chief executive officer owned 66,773 shares of the company’s stock, valued at approximately $33,526,723.30. This represents a 7.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 68,092 shares of company stock valued at $35,762,410. Company insiders own 0.40% of the company’s stock.
Wall Street Analysts Forecast Growth Several equities analysts have weighed in on SPOT shares. Phillip Securities upgraded Spotify Technology to a “buy” rating and set a $650.00 price target for the company in a report on Tuesday, August 11th. KeyCorp lowered their target price on Spotify Technology from $680.00 to $660.00 and set an “overweight” rating for the company in a research report on Thursday, October 1st. Argus reiterated a “buy” rating and set a $600.00 target price on shares of Spotify Technology in a research report on Thursday, August 13th. Rosenblatt Securities reissued a “neutral” rating and issued a $527.00 target price on shares of Spotify Technology in a report on Tuesday. Finally, Benchmark lowered their price objective on shares of Spotify Technology from $695.00 to $650.00 and set a “buy” rating for the company in a research report on Wednesday, July 22nd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $610.25.
View Our Latest Analysis on Spotify Technology
Spotify Technology News Summary Here are the key news stories impacting Spotify Technology this week:
Positive Sentiment: Jefferies raised its price target to $620 from $600 and reiterated a Buy rating ahead of Spotify’s third-quarter results. The firm cited muted expectations, moderating cost pressures, potential advertising improvement, and possible AI products as catalysts. Jefferies also views Spotify’s platform as highly defensible against AI competition. Spotify Q3 preview: Jefferies sees favorable set-up as AI products and ad growth offer upside Positive Sentiment: Premium revenue reportedly grew 15%, supported by subscriber gains and pricing increases. Stronger subscription monetization could help offset continuing pressure in Spotify’s advertising business. Spotify’s Premium Growth Gains Traction Positive Sentiment: Spotify launched paid podcast memberships, allowing creators to offer perks such as ad-free listening, early access, and exclusive audio or video while retaining 90% of revenue. The initiative could increase creator retention and add a higher-margin monetization channel. Spotify launches paid podcast memberships with perks beyond bonus content Positive Sentiment: Spotify said it removed more than 50 million AI-generated “slop” and spam tracks from recommendations this year. The cleanup may improve user trust, discovery quality, and the platform’s defenses against low-quality AI content, although it also highlights a growing content-management challenge. Spotify has pulled more than 50m AI slop and spam tracks out of its recommendations this year Neutral Sentiment: Rosenblatt reaffirmed a Neutral rating with a $527 price target, indicating limited near-term upside at the cited price. Investors are also awaiting third-quarter metrics, including monthly active users, Premium subscribers, and revenue. Negative Sentiment: Advertising remains a pressure point, while Spotify’s multiyear Joe Rogan renewal increases content commitments. Although the company expanded its buyback authorization by approximately $1.5 billion to about $2.22 billion, investors must weigh capital returns against higher content spending. StoneX also downgraded the shares from Buy to Hold. (Free Report)
Spotify Technology SA is an audio streaming company that operates the Spotify platform, offering users access to music, podcasts and audiobooks through internet-connected devices. Its catalog includes licensed recordings from music labels and artists, as well as podcasts and other audio content from creators and publishers.
Spotify provides both an ad-supported service and subscription-based Premium plans. Premium subscribers generally receive ad-free listening and additional features, while the advertising-supported service allows users to access content without a paid subscription.
Further Reading Five stocks we like better than Spotify Technology Aurora Rejects Curaleaf’s Higher Bid, But the Takeover Fight Isn’t Over Centrus Energy Is Building a Nuclear Fuel Powerhouse—Why Is Its Stock Struggling? Halliburton Gains Traction: Multiyear Upcycle Ahead Meta Platforms’ AI Comeback Faces an Earnings Test—And a $10 Billion Charge Want to see what other hedge funds are holding SPOT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Spotify Technology (NYSE:SPOT – Free Report).
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A Q4 2026 revenue forecast that fell short of Wall Street's expectations is overshadowing an earnings beat at Netflix (NASDAQ:NFLX | NFLX Price Prediction), and a string of lowered analyst targets is compounding the damage.
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Spotify Technology SA (NYSE:SPOT) is heading into its third-quarter results with scope for improving advertising growth, moderating cost pressures and a potential artificial intelligence product launch providing catalysts for the shares, according to Jefferies.
The investment bank reiterated its Buy rating on the music-streaming company and raised its price target to $620 from $600, citing a favorable set-up against muted investor expectations.
Gross margin will be a key focus when Spotify reports. Jefferies expects investors to look for a third-quarter margin of about 33.1%, slightly above the company’s guidance of 32.9%. That would represent a decline from the 33.4% reported in the second quarter, reflecting seasonal factors and a regulatory charge that has historically weighed on margins by 30 to 40 basis points.
Jefferies considers the guidance achievable, with room for a modest upside surprise based on historical trends. Fourth-quarter margin expectations will also be closely watched, with investors looking for around 33.7%, below the bank’s previous forecast of 34.3%.
Analysts lowered their fourth-quarter gross margin estimate but said 2026 has been an investment year, potentially limiting the sequential improvement typically seen at year-end.
Beyond margins, Jefferies expects operating expense growth to peak in the third quarter before moderating into the fourth quarter and 2027. Advertising revenue growth could also improve over the coming quarters as programmatic advertising accounts for a larger share of the business.
Another potential catalyst is an AI-powered remixing product tied to Spotify’s partnership with Warner Music Group. Jefferies expects a possible launch announcement later in 2026, although it does not include any AI-related revenue in its base-case forecasts.
Jefferies also expects US and UK subscription price increases to be announced within the next six to 12 months, while arguing that Spotify’s platform remains well positioned against concerns that AI could disrupt its business.
Spotify on Tuesday launched paid memberships, a new way for podcasters to make money from their biggest fans beyond paywalled bonus episodes. Creators can decide which perks to offer listeners, which could be bonus audio or video, fewer ads, early access to shows, or some combination of these.
The streaming service first previewed the idea at its Investor Day in May, where it also introduced AI capabilities that let listeners ask questions about what they’re listening to or watching and debuted new tools for managing creator sponsorships.
Image Credits:Spotify
As the company explained at the time, memberships would help to “create a natural path to go deeper, unlocking new and exclusive experiences for fans and new revenue opportunities for creators.”
The feature is now rolling out to 34 markets globally, including the U.S.
The launch is the latest example of Spotify’s effort to make its platform more attractive to podcast creators, particularly as it moves further into the video space to compete with YouTube. Though podcasters have long been able to monetize through ads, the new memberships could entice more fans to support creators by offering more than just an occasional bonus episode.
Creators keep 90% of the membership revenue and can package their benefits across multiple tiers and pricing options to appeal to fans at different levels of commitment. To qualify, podcasters must host their shows on Spotify for Creators or Megaphone, have at least 100 consumption hours, 100 listeners or viewers, and at least three published episodes.
Image Credits:Spotify
Fans will see memberships promoted on the show’s Spotify page, where they can subscribe, pay, and immediately access the exclusive content. (The company tells us that memberships will be purchased on the web, not through in-app purchases).
A handful of shows will offer memberships at launch, including “The Adam Friedland Show,” “Making Sense with Sam Harris,” “Shawn Ryan Show,” “The Sculpt Society,” “Two Hot Takes,” as well as YMH Studios, which is bringing memberships to 12 shows across its network.
Memberships join other Spotify monetization tools, including advertising and the Spotify Partner Program, as well as features that help creators grow their audience, like promotions, free trials, and analytics. Soon, Spotify says creators will be able to offer fans membership badges and welcome clips, too.
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Wall Street analysts expect Spotify (SPOT - Free Report) to post quarterly earnings of $3.12 per share in its upcoming report, which indicates a year-over-year decline of 18.5%. Revenues are expected to be $5.73 billion, up 14.8% from the year-ago quarter.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
That said, let's delve into the average estimates of some Spotify metrics that Wall Street analysts commonly model and monitor.
The collective assessment of analysts points to an estimated 'Total Monthly Active Users (MAUs)' of 790.07 million. Compared to the current estimate, the company reported 713.00 million in the same quarter of the previous year.
Analysts predict that the 'Premium Subscribers' will reach 305.06 million. Compared to the current estimate, the company reported 281.00 million in the same quarter of the previous year.
Analysts forecast 'Ad-Supported MAUs' to reach 499.83 million. Compared to the current estimate, the company reported 446.00 million in the same quarter of the previous year.
View all Key Company Metrics for Spotify here>>>
Spotify shares have witnessed a change of +4.1% in the past month, in contrast to the Zacks S&P 500 composite's +1.5% move. With a Zacks Rank #4 (Sell), SPOT is expected underperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Assenagon Asset Management S.A. grew its holdings in shares of Spotify Technology (NYSE:SPOT – Free Report) by 101.5% in the third quarter, according to its most recent filing with the SEC. The firm owned 283,703 shares of the company’s stock after acquiring an additional 142,875 shares during the quarter. Assenagon Asset Management S.A. owned about 0.14% of Spotify Technology worth $138,271,000 as of its most recent SEC filing.
Several other institutional investors and hedge funds also recently modified their holdings of SPOT. Tsfg LLC lifted its stake in shares of Spotify Technology by 39.7% in the 2nd quarter. Tsfg LLC now owns 81 shares of the company’s stock worth $37,000 after acquiring an additional 23 shares during the period. Carl P. Sherr & Co. LLC increased its stake in shares of Spotify Technology by 0.7% during the first quarter. Carl P. Sherr & Co. LLC now owns 4,138 shares of the company’s stock valued at $2,007,000 after acquiring an additional 27 shares during the period. Simplify Asset Management Inc. increased its stake in shares of Spotify Technology by 3.1% during the first quarter. Simplify Asset Management Inc. now owns 1,074 shares of the company’s stock valued at $521,000 after acquiring an additional 32 shares during the period. Arkadios Wealth Advisors raised its holdings in Spotify Technology by 7.5% during the first quarter. Arkadios Wealth Advisors now owns 474 shares of the company’s stock worth $230,000 after purchasing an additional 33 shares in the last quarter. Finally, Simplicity Wealth LLC raised its holdings in Spotify Technology by 4.4% during the first quarter. Simplicity Wealth LLC now owns 860 shares of the company’s stock worth $417,000 after purchasing an additional 36 shares in the last quarter. Institutional investors own 84.09% of the company’s stock.
Insider Buying and Selling In related news, CEO Gustav Söderström sold 20,913 shares of the firm’s stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $544.19, for a total value of $11,380,645.47. Following the completion of the transaction, the chief executive officer owned 20,025 shares of the company’s stock, valued at approximately $10,897,404.75. This trade represents a 51.08% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Alex Norström sold 5,436 shares of Spotify Technology stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $502.10, for a total transaction of $2,729,415.60. Following the transaction, the chief executive officer owned 66,773 shares in the company, valued at approximately $33,526,723.30. The trade was a 7.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 68,092 shares of company stock valued at $35,762,410 in the last ninety days. Company insiders own 0.40% of the company’s stock.
Spotify Technology Stock Up 1.7% Shares of NYSE SPOT opened at $532.69 on Friday. Spotify Technology has a 12 month low of $405.00 and a 12 month high of $696.95. The company has a market cap of $109.67 billion, a price-to-earnings ratio of 32.62, a P/E/G ratio of 1.61 and a beta of 1.61. The business has a fifty day simple moving average of $521.34 and a 200-day simple moving average of $495.34. Spotify Technology (NYSE:SPOT – Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The company reported $3.03 earnings per share for the quarter, missing analysts’ consensus estimates of $3.16 by ($0.13). Spotify Technology had a net margin of 18.44% and a return on equity of 41.39%. The company had revenue of $5.45 billion during the quarter, compared to analyst estimates of $5.47 billion. During the same quarter last year, the business earned ($0.42) EPS. The company’s revenue for the quarter was up 13.9% compared to the same quarter last year. As a group, sell-side analysts expect that Spotify Technology will post 13.77 EPS for the current fiscal year.
Analysts Set New Price Targets A number of equities research analysts have weighed in on the company. Morgan Stanley upped their target price on Spotify Technology from $610.00 to $640.00 and gave the stock an “overweight” rating in a research report on Monday, August 3rd. Piper Sandler started coverage on Spotify Technology in a research note on Thursday, October 8th. They set a “neutral” rating and a $540.00 price target for the company. Benchmark lowered their price target on Spotify Technology from $695.00 to $650.00 and set a “buy” rating on the stock in a research report on Wednesday, July 22nd. Rosenblatt Securities dropped their price objective on Spotify Technology from $531.00 to $527.00 and set a “neutral” rating on the stock in a research note on Wednesday, August 5th. Finally, UBS Group dropped their price objective on Spotify Technology from $690.00 to $675.00 and set a “buy” rating on the stock in a research note on Monday, October 5th. One analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, Spotify Technology has an average rating of “Moderate Buy” and a consensus price target of $610.25.
View Our Latest Stock Analysis on SPOT
Trending Headlines about Spotify Technology Here are the key news stories impacting Spotify Technology this week:
Positive Sentiment: Spotify outperformed the broader market in the latest session, suggesting investors may be focusing on its improving profitability and long-term growth prospects ahead of its upcoming earnings report. Why Spotify outpaced the stock market Positive Sentiment: Baillie Gifford highlighted Spotify’s potential to benefit from artificial-intelligence-driven personalization and deeper listener insights, which could support engagement, targeting and monetization over time. Spotify AI personalization opportunity Positive Sentiment: Expanded Siri functionality in Apple’s iOS 27 makes Spotify easier to control by voice, potentially improving discovery and usage among iPhone customers. Spotify Siri integration Neutral Sentiment: StoneX downgraded SPOT to Hold from Buy, citing limited near-term catalysts for revenue per user and higher payments to record labels. The call adds pressure to a stock trading at a premium earnings multiple. StoneX Spotify downgrade Neutral Sentiment: Spotify is expected to report earnings soon, but analysts anticipate a decline in earnings and see limited evidence of a likely consensus beat. Investors will focus on margins, subscriber trends and management’s outlook. Spotify earnings expectations Negative Sentiment: Reports that lossless audio is disrupting the Spotify desktop application could hurt customer satisfaction and complicate the rollout of a higher-quality service. Spotify lossless audio issues Negative Sentiment: CEO Gustav Söderström sold approximately $11.1 million of shares, reducing his direct holdings by more than half. The filing says the sale covered tax withholding on vested equity awards, which limits—but does not eliminate—the negative signaling effect. Spotify CEO SEC filing Spotify Technology Company Profile (Free Report)
Spotify Technology SA is a global audio streaming company that operates the Spotify platform. The service provides users with access to a broad catalog of music, podcasts and audiobooks, along with personalized recommendations, playlists and other discovery features.
Spotify offers a subscription-based Premium service with enhanced listening features, as well as an ad-supported service available at no direct cost to users. The company generates revenue primarily through Premium subscriptions and advertising, including audio, video and display advertising delivered across its platform.
Founded in 2006 by Daniel Ek and Martin Lorentzon, Spotify is headquartered in Stockholm, Sweden, and serves listeners, creators, advertisers and other partners across markets worldwide.
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In the latest trading session, Spotify (SPOT - Free Report) closed at $533.37, marking a +1.8% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.33%. Elsewhere, the Dow saw an upswing of 1.08%, while the tech-heavy Nasdaq appreciated by 0.08%.
Shares of the music-streaming service operator witnessed a loss of 4.29% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.62%, and the S&P 500's gain of 1.41%.
Market participants will be closely following the financial results of Spotify in its upcoming release. The company plans to announce its earnings on October 22, 2026. The company is forecasted to report an EPS of $3.12, showcasing a 18.54% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $5.73 billion, reflecting a 14.79% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.77 per share and a revenue of $22.47 billion, representing changes of +15.81% and +15.61%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Spotify. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.98% lower. Spotify currently has a Zacks Rank of #4 (Sell).
From a valuation perspective, Spotify is currently exchanging hands at a Forward P/E ratio of 38.05. For comparison, its industry has an average Forward P/E of 20.42, which means Spotify is trading at a premium to the group.
Investors should also note that SPOT has a PEG ratio of 1.61 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry had an average PEG ratio of 1.18 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 83, finds itself in the top 34% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Wall Street expects a year-over-year decline in earnings on higher revenues when Spotify (SPOT - Free Report) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 22. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis music-streaming service operator is expected to post quarterly earnings of $3.12 per share in its upcoming report, which represents a year-over-year change of -18.5%.
Revenues are expected to be $5.73 billion, up 14.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.01% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Spotify?For Spotify, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -4.82%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Spotify will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Spotify would post earnings of $3.27 per share when it actually produced earnings of $3.03, delivering a surprise of -7.34%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Spotify doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
It’s now easier to use Spotify by talking to Siri on iPhones updated to iOS 27, Spotify said on Tuesday. Users will no longer need to specify “on Spotify” when they’re asking Siri to play music or other content using the streaming service’s apps.
Instead, users can just say whatever it is they want to hear, and Spotify will play the content, whether that’s a specific track, album, podcast, audiobook, or a broader query, like “play workout music,” or a request for one of Spotify’s features, like “play my DJ.”
Siri’s voice control can also be used to do things like request personalized recommendations, resume podcasts, search your library, or even create a Prompted Playlist with AI.
Spotify says removing the extra voice command will make hands-free listening feel more natural, as users can just focus on what they want to hear, not how to phrase the request properly to get their preferred music app to respond.
This feature works because Siri can now learn your music app preference. If you consistently use Spotify, it will route your audio requests to that app automatically.
The new feature is available globally for users with an iPhone 15 Pro or later, outside the EU, if Apple Intelligence is enabled in Settings.
Spotify (SPOT - Free Report) ended the recent trading session at $526.42, demonstrating a +2.63% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.47%. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq depreciated by 1.25%.
The music-streaming service operator's stock has dropped by 1.93% in the past month, falling short of the Computer and Technology sector's gain of 6.08% and the S&P 500's gain of 1.15%.
Investors will be eagerly watching for the performance of Spotify in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 22, 2026. On that day, Spotify is projected to report earnings of $3.12 per share, which would represent a year-over-year decline of 18.54%. Our most recent consensus estimate is calling for quarterly revenue of $5.76 billion, up 15.31% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.85 per share and a revenue of $22.61 billion, representing changes of +16.48% and +16.36%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Spotify. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 2.59% fall in the Zacks Consensus EPS estimate. Spotify currently has a Zacks Rank of #4 (Sell).
Investors should also note Spotify's current valuation metrics, including its Forward P/E ratio of 37.05. For comparison, its industry has an average Forward P/E of 20.39, which means Spotify is trading at a premium to the group.
It's also important to note that SPOT currently trades at a PEG ratio of 1.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.19.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 102, this industry ranks in the top 42% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Spotify Technology S.A. (NYSE:SPOT) announced Thursday that it has signed a new multiyear licensing agreement with Joe Rogan, extending a podcast partnership that began in 2020.
The agreement will keep The Joe Rogan Experience available on Spotify, with new episodes released weekly. Listeners can also continue watching or streaming the podcast on other platforms.
Joe Rogan’s Podcast Remains a Major DrawThe Joe Rogan Experience has 18 million followers and has remained Spotify’s most-followed podcast since the partnership began six years ago.
The show also ranked as the top podcast across major platforms in 2025, according to Spotify.
Its popularity stems from long-form conversations covering a wide range of subjects, helping the podcast attract a large international audience.
Rogan expressed enthusiasm about extending the agreement, describing his relationship with Spotify as highly successful and praising the company’s support.
Spotify Strengthens Its Podcast BusinessJordan Newman, Spotify’s head of content partnerships, said Rogan has built a lasting franchise that continues to attract listeners worldwide.
Newman also highlighted the growth of Spotify’s podcast business alongside the show and expressed confidence in the partnership’s future.
The renewal allows Spotify to maintain its association with one of the industry’s most popular podcasts while continuing to reach audiences across multiple platforms.
Spotify did not disclose the financial terms or specific duration of the new licensing agreement.
Deal Reportedly Mirrors Previous $250 Million AgreementAccording to a Thursday report by The Wall Street Journal, the new multiyear agreement gives Spotify licensing and advertising sales rights for The Joe Rogan Experience.
The deal reportedly carries terms similar to Rogan’s previous agreement, which allowed the podcast to reach audiences across multiple platforms and offered him potential earnings estimated at $250 million. The report cited people familiar with the matter.
The podcast also remains No. 1 in U.S. listenership, underscoring its importance to Spotify’s podcast and advertising businesses.
Separately, Piper Sandler analyst James Callahan initiated coverage of Spotify on Thursday with a Neutral rating and a $540 price forecast.
SPOT Price Action: Spotify Technology shares were up 1.34% at $519.79 at the time of publication on Thursday, according to Benzinga Pro data.
Spotify has renewed its contract with star podcaster Joe Rogan, inking a nine-figure, multi-year deal, according to a report.
The new contract is similar to Rogan’s previous $250 million deal with the Swedish-based streaming service that he inked in 2024 for his wildly popular “The Joe Rogan Experience,” the Wall Street Journal reported Thursday. The article did not put an exact dollar figure on Rogan’s earnings.
“The partnership with Spotify has been an amazing fit, and they’re incredible to work with,” Rogan said in a statement. “I’m extremely happy and excited to continue with them for years to come.”
Joe Rogan renewed his lucrative contract with Spotify for his popular podcast, “The Joe Rogan Experience.” YouTube/PowerfulJRE “The Joe Rogan Experience” is the most popular podcast in the US, according to Edison Research, which began tracking the market in 2019. Rogan’s show has more than 18 million followers on Spotify and over 21 million on YouTube.
Launched in 2009, Rogan’s podcast features in-depth, wide-ranging interviews with comedians, Hollywood A-listers, politicians, scientists and authors.
Rogan has gained a massive following thanks to his no-nonsense, sometimes brash, commentary featuring contrarian views that occasionally spark controversy.
Rogan is known for challenging wokeism and cancel culture, nurturing “manosphere” talent along the way.
Ahead of the 2024 election, he interviewed and endorsed President Donald Trump, though he has since spoken out against the GOP administration on issues like immigration enforcement.
True to form, Rogan has also slammed far-left Sen. Bernie Sanders of Vermont for kowtowing to “the Democratic establishment.”
Spotify first began working with Rogan in 2020, paying him more than $100 million at the time. REUTERS Spotify first tapped Rogan in 2020, paying him more than $100 million to put the show on its platform exclusively. The podcast reached about 28.4 million Americans in the second quarter of this year, according to Edison, up from 6.6 million at the beginning of 2020.
In early 2024, Spotify renewed the deal and began distributing the show across all podcast platforms, including YouTube.
Under Rogan’s new agreement, Spotify — which boasts 300 million premium subscribers — will continue to handle sales and licensing for the podcast, which is available across multiple services.
Joe Rogan's Spotify profile is seen in front of displayed Spotify logo in this photo illustration taken, February 7, 2022. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab
Oct 8 (Reuters) - Spotify said on Thursday it had signed a new multiyear licensing agreement with podcaster Joe Rogan for "The Joe Rogan Experience", extending a partnership that began in 2020.
The renewal has similar terms to Rogan's previous deal, which carried an estimated earnout of $250 million, the Wall Street Journal reported, citing people familiar with the matter.
Sign up here.
Spotify did not disclose financial terms and did not immediately respond to a Reuters request for comment.
The show debuted in 2009 and was exclusive to Spotify from 2020 until the 2024 renewal, when it also became available on Apple, Amazon and YouTube. Spotify said new episodes would keep coming out each week on its platform and elsewhere.
The podcast has more than 18 million followers on Spotify and over 21 million on YouTube. It was the No. 1 podcast in the US in the second quarter of 2026 based on reach, according to Edison Research.
Rogan has interviewed politicians, businesspeople and celebrities including Tesla CEO Elon Musk and YouTuber MrBeast. He also interviewed and endorsed Donald Trump before the 2024 US presidential election.
Reporting by Anzar Mehraj in Bengaluru; Editing by Devika Syamnath
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Spotify is formalizing efforts around its enterprise and developer tools business with Thursday’s launch of technology.spotify.com, a new site that will make its internal tech available to outsiders.
The company’s foray into this space is not exactly new. As Spotify points out in its announcement of the new site, it’s been offering different products to the wider tech community since 2020 when it open sourced Backstage, a platform and framework for building customizable developer portals.
It has also been selling its enterprise-focused software experimentation platform Confidence since 2023 and its enterprise software development platform Portal since 2024. Earlier this year, it began selling its developer tool for managing AI coding agents, Xirp.
While many technology companies build their own internal systems to help their developers work more efficiently, it’s somewhat unusual to see a company like Spotify sell those tools to other businesses.
Spotify’s SVP of Technology & Platform, Tyson Singer, acknowledged that the company’s move into this space has raised questions.
“I get asked a version of this question every day: why is Spotify in the business of selling software?,” he wrote in a post on Spotify’s engineering site. “The truth is, the Spotify you know and love is more than a great streaming service. Behind our consumer app are hundreds of cross-functional squads shipping products and code day in, day out,” he explained.
The new technology website will house the solutions Spotify has built to serve its own audience of 777 million monthly active users, including both open source and paid services.
Though AI has made building such software faster, Spotify points out that this doesn’t necessarily mean it’s simpler — “the complexity, the cost and the operational surface area all grow with it,” Singer wrote. The company’s bet is that, despite AI’s advances, software development teams will still require certain core services, like those Spotify sells, which it says will be agent-ready.
So far, it’s unclear how much revenue Spotify’s enterprise sales are generating, as the company hasn’t disclosed those figures in its financial reporting. That could potentially change as Spotify makes a more concerted push into the enterprise market, turning what was once a side business into a more formal operation.
The technology website doesn’t include pricing; instead, companies can fill out a form to contact sales and discuss their needs.
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Sarah has worked as a reporter for TechCrunch since August 2011. She joined the company after having previously spent over three years at ReadWriteWeb. Prior to her work as a reporter, Sarah worked in I.T. across a number of industries, including banking, retail and software.
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A Look at Spotify Technology SA (SPOT) After 5.1% Gain -- GF Value $527.17 vs Price $512.92
On October 07, 2026, Spotify Technology SA SPOT shares rose 5.1% to $512.92, within a 52-week range of $405.00 to $700.12. The stock has experienced a year-to-date decline of 11.7% and a significant drop of 24.6% over the past year.
GF Value™ verdict: SPOT is currently trading at $512.92, which is 2.7% below its GF Value™ estimate of $527.17.GF Score™ of 79/100 indicates that the stock has above-average fundamentals based on various financial metrics.Notable signal: Financial strength is rated 9/10, indicating a strong balance sheet and low risk of financial distress.Is SPOT Overvalued or Undervalued?Spotify Technology SA SPOT is currently trading at $512.92, which positions it 2.7% below its GF Value™ estimate of $527.17. This slight undervaluation suggests a modest margin of safety for potential investors. The GF Value™ is GuruFocus' proprietary intrinsic-value estimate, derived from a combination of historical trading multiples, past business growth, and future performance expectations. Given the current price relative to GF Value™, SPOT presents a potential opportunity for investors, albeit with the caveat that the stock has seen significant volatility over the past year.
With a GF Valuation label of "Fairly Valued," the stock reflects a balance between its current trading price and intrinsic value. However, investors should be cautious of the macroeconomic factors and market sentiment that could impact the stock's performance moving forward.
How Does SPOT's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)31.9x99.2xForward P/E29.8xN/ASPOT's current P/E (TTM) ratio of 31.9x is significantly below its 5-year median P/E ratio of 99.2x, indicating a drastic reduction in valuation compared to its historical levels. This aligns with the GF Value™ assessment, suggesting the stock is undervalued relative to its past performance metrics.
What Does SPOT's GF Score™ Tell Us?The GF Score™ measures the overall strength of a company's financial health, growth potential, profitability, valuation, and momentum. With a GF Score™ of 79/100, SPOT demonstrates solid fundamentals, particularly strong financial strength and growth potential, although it falls short in profitability.
MetricRatingGF Score™79Financial Strength9/10Profitability4/10Growth8/10Valuation9/10Momentum5/10The strong financial strength rating of 9/10 indicates that Spotify has a robust balance sheet, while the growth rank of 8/10 suggests positive future growth prospects. However, the profitability rank of 4/10 signals some concerns, as the company may face challenges in maintaining profitability amidst stiff competition in the interactive media industry.
What Are Gurus and Insiders Doing with SPOT?Currently, 20 gurus hold SPOT, with 10 increasing their positions and 12 trimming their stakes in recent quarters. This mixed activity indicates a cautious sentiment among institutional investors. Notably, insiders have sold $98.9 million worth of shares over the past 12 months without any buying activity, which could reflect a lack of confidence or a strategy to realize gains. Such insider selling might raise red flags for potential investors regarding the company's outlook and future performance.
What This Means for InvestorsIn summary, Spotify Technology SA SPOT is currently considered undervalued based on its GF Value™ estimate, providing a modest opportunity for investors who can navigate the associated risks. The strong financial health indicated by its high GF Score™ and solid financial strength rating is tempered by profitability concerns and insider selling activity. For further details, visit the Spotify Technology SA (SPOT) stock page and learn more about its valuation on the GF Value™ page.
Frequently Asked QuestionsWhat is SPOT's GF Score™?
SPOT has a GF Score™ of 79/100, indicating above-average fundamentals that suggest a strong company quality based on various financial metrics.
Is SPOT overvalued or undervalued?
SPOT is currently undervalued, trading 2.7% below its GF Value™ estimate of $527.17.
What is SPOT's P/E ratio?
SPOT's P/E (TTM) ratio is 31.9x, which is significantly lower than its 5-year median P/E of 99.2x, indicating a substantial decrease in valuation relative to its historical performance.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
Spotify (SPOT - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this music-streaming service operator have returned -7.7%, compared to the Zacks S&P 500 composite's +1.4% change. During this period, the Zacks Internet - Software industry, which Spotify falls in, has gained 9%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Spotify is expected to post earnings of $3.12 per share, indicating a change of -18.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.6% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $13.85 points to a change of +16.5% from the prior year. Over the last 30 days, this estimate has changed -2.6%.
For the next fiscal year, the consensus earnings estimate of $17.48 indicates a change of +26.2% from what Spotify is expected to report a year ago. Over the past month, the estimate has changed -0.3%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Spotify is rated Zacks Rank #4 (Sell).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Spotify, the consensus sales estimate of $5.76 billion for the current quarter points to a year-over-year change of +15.3%. The $22.61 billion and $25.75 billion estimates for the current and next fiscal years indicate changes of +16.4% and +13.9%, respectively.
Last Reported Results and Surprise HistorySpotify reported revenues of $5.55 billion in the last reported quarter, representing a year-over-year change of +16.7%. EPS of $3.03 for the same period compares with -$0.48 a year ago.
Compared to the Zacks Consensus Estimate of $5.55 billion, the reported revenues represent a surprise of 0%. The EPS surprise was -7.34%.
Over the last four quarters, Spotify surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Spotify is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Spotify. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
Download this episode on Apple Podcasts/Spotify or listen below:
Ray Dalio says rising rates could turn today's AI frenzy into tomorrow's reckoning. (00:14) Spotify (SPOT) is about to get a lot more audible. (01:23) Queso (CMG) with your coffee (SBUX)? (02:25)
This is an abridged transcript.
Ray Dalio has once again sounded the alarm on the AI bubble.
The billionaire investor is warning that the bubble is nearing the point where it may burst due to rising interest rates and increased borrowing to fund the AI infrastructure buildout.
He noted the huge amount of debt taken out to fund AI, and with rates expected to climb further, he said there's a mounting risk that the bubble could pop.
Dalio on Tuesday told Bloomberg News that heavy borrowing to buy assets, or a potential wealth tax that requires selling assets to make money, can lead to a bubble bursting.
"What creates the bursting of a bubble is the fact that you need cash," he said. "And you start to convert the wealth that you have to do that. Something like a wealth tax would have that effect, or having to pay back loans. So there's that dynamic that we have to keep an eye on."
The AI trade propelled the stock market to fresh highs this week, with the S&P 500 (SP500) and Nasdaq (COMP:IND) notching new closing records on Tuesday.
But these gains have largely been limited to stocks benefitting from the AI boom, while other sectors haven't fared as well.
Audiobooks on Spotify are going global.
The digital audio streaming service announced Wednesday that, through the end of 2026, it will expand audiobook access from 22 markets to more than 180.
The expansion will bring Spotify audiobooks to more than 750 million people worldwide, giving listeners in new markets access to more than 350,000 titles. The expanded catalog will include books in Spanish, Portuguese, Italian, Polish and other languages, spanning more than 120 languages in total.
The move comes as demand for audiobooks accelerates. Monthly audiobook listeners grew nearly 40% over the past year, while listening hours increased by more than 30%.
Since launching its audiobook offering just over a year ago, Spotify says it has surpassed one million Audiobooks+ subscribers and generated more than $100M in annual recurring revenue.
Semafor is raising the possibility that Chipotle Mexican Grill (CMG) and Starbucks (SBUX) could merge and run operations similar to Yum! Brands’ (YUM) KFC, Pizza Hut, and Taco Bell.
Speculation as to the identity of an interested buyer was ignited last week following reports that Chipotle (CMG) enlisted bankers to fend off a potential takeover.
"[Starbucks CEO and former Chipotle CEO] Brian Niccol worked at Yum for more than a decade and understands that scale matters in razor-thin restaurant margins. And Starbucks could provide a platform to grow Chipotle’s nascent international business,” Semafor’s Rohan Goswami writes.
What do you guys think about queso with your coffee?
Catalyst watch:
Neogen (NEOG) will hold an Investor Day event. The focus of the event will be on Neogen's strategic transformation as the company provides additional details on its commercial prowess, high-impact innovation, and operational drive toward sustainable improvement in financial performance.
Microsoft (MSFT) will hold its Windows and Surface event. The event is expected to focus on local AI in Windows and Surface devices, with possible updates on the Surface Laptop Ultra, Surface RTX Spark Dev Box, and Windows 11. Microsoft CEO Satya Nadella, Windows and Surface chief Pavan Davuluri, and Nvidia (NVDA) CEO Jensen Huang are expected to attend.
Costco (COST) monthly sales report.
Stock index futures are in mixed territory.
Crude oil is up 0.1% at $89. Brent crude is up 0.8% at $101.
The FTSE 100 is down 0.3% and the DAX is down 0.8%. China's (SHCOMP) markets closed.
Spotify Technology (NYSE:SPOT – Get Free Report) has been given a consensus recommendation of “Moderate Buy” by the twenty-four ratings firms that are currently covering the company, Marketbeat Ratings reports. Six equities research analysts have rated the stock with a hold rating, seventeen have issued a buy rating and one has given a strong buy rating to the company. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is $592.75.
SPOT has been the subject of several recent analyst reports. Wells Fargo & Company decreased their price objective on shares of Spotify Technology from $600.00 to $570.00 and set an “overweight” rating for the company in a research report on Thursday, July 9th. Cantor Fitzgerald boosted their target price on shares of Spotify Technology from $510.00 to $530.00 and gave the company a “neutral” rating in a report on Wednesday, August 5th. Rosenblatt Securities cut their price target on shares of Spotify Technology from $531.00 to $527.00 and set a “neutral” rating on the stock in a research report on Wednesday, August 5th. KeyCorp decreased their price target on Spotify Technology from $680.00 to $660.00 and set an “overweight” rating for the company in a report on Thursday, October 1st. Finally, Weiss Ratings raised Spotify Technology from a “hold (c)” rating to a “hold (c+)” rating in a research note on Wednesday, August 26th.
View Our Latest Analysis on Spotify Technology
Spotify Technology News Roundup Here are the key news stories impacting Spotify Technology this week: Positive Sentiment: UBS said Spotify’s differentiated products and features should create additional monetization opportunities and improve operating leverage. Potential developments include the AI-powered Remix tool, which could launch by the end of 2026 or in early 2027. Spotify expected to make progress towards financial targets, UBS says Positive Sentiment: UBS cut its price target modestly from $690 to $675 but retained its Buy rating, implying substantial upside from the stock’s recent trading level. The target reduction appears to reflect valuation or near-term execution considerations rather than a change in UBS’s longer-term outlook. Positive Sentiment: A Zacks report highlighted relatively optimistic Wall Street sentiment toward Spotify, which may be supporting the stock as investors focus on analyst expectations and the company’s growth prospects. Wall Street Bulls Look Optimistic About Spotify Neutral Sentiment: Spotify’s marketing and engagement initiatives are receiving attention ahead of earnings. Investors are watching whether stronger engagement can translate into sustainable profitability as expectations point to revenue growth but potentially lower earnings per share. Is Spotify Prioritizing Brand Engagement Over Profit Discipline? Negative Sentiment: Consumer-trend data cited by LikeFolio suggests some users may be shifting from Spotify toward Apple Music, raising concerns about competitive pressure and Spotify’s ability to sustain its historical edge in music streaming. Consumers Tuning Out Spotify in Favor of Apple Music Insider Activity at Spotify Technology In other Spotify Technology news, CEO Gustav Söderström sold 20,913 shares of the stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $544.19, for a total transaction of $11,380,645.47. Following the transaction, the chief executive officer directly owned 20,025 shares in the company, valued at approximately $10,897,404.75. This represents a 51.08% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Alex Norström sold 5,436 shares of Spotify Technology stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $502.10, for a total transaction of $2,729,415.60. Following the completion of the sale, the chief executive officer owned 66,773 shares of the company’s stock, valued at $33,526,723.30. This represents a 7.53% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 47,182 shares of company stock worth $24,677,392. Insiders own 0.40% of the company’s stock.
Hedge Funds Weigh In On Spotify Technology A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Deutsche Bank AG raised its stake in Spotify Technology by 15.7% during the 4th quarter. Deutsche Bank AG now owns 1,485,921 shares of the company’s stock worth $862,889,000 after buying an additional 201,080 shares during the period. Janus Henderson Group PLC boosted its holdings in Spotify Technology by 20.1% in the first quarter. Janus Henderson Group PLC now owns 1,711,015 shares of the company’s stock worth $829,641,000 after acquiring an additional 286,844 shares in the last quarter. Tiger Global Management LLC grew its stake in Spotify Technology by 25.3% in the first quarter. Tiger Global Management LLC now owns 1,580,761 shares of the company’s stock valued at $766,527,000 after acquiring an additional 319,300 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in Spotify Technology by 1,382.3% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,247,182 shares of the company’s stock valued at $724,251,000 after acquiring an additional 1,163,045 shares during the period. Finally, Bamco Inc. NY increased its holdings in shares of Spotify Technology by 0.9% during the fourth quarter. Bamco Inc. NY now owns 997,291 shares of the company’s stock valued at $579,137,000 after acquiring an additional 8,596 shares in the last quarter. Institutional investors own 84.09% of the company’s stock.
Spotify Technology Price Performance Spotify Technology stock opened at $487.74 on Wednesday. The stock’s 50 day moving average is $517.13 and its 200 day moving average is $493.07. Spotify Technology has a one year low of $405.00 and a one year high of $700.12. The firm has a market cap of $100.42 billion, a P/E ratio of 30.37, a P/E/G ratio of 1.48 and a beta of 1.61.
Spotify Technology (NYSE:SPOT – Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported $3.03 earnings per share for the quarter, missing analysts’ consensus estimates of $3.16 by ($0.13). The firm had revenue of $5.45 billion for the quarter, compared to analyst estimates of $5.47 billion. Spotify Technology had a net margin of 18.44% and a return on equity of 41.39%. The business’s revenue for the quarter was up 13.9% compared to the same quarter last year. During the same period in the prior year, the company posted ($0.42) EPS. Equities analysts anticipate that Spotify Technology will post 13.85 earnings per share for the current fiscal year.
Spotify Technology Company Profile (Get Free Report)
Spotify Technology SA is a global audio streaming company that operates the Spotify platform. The service provides users with access to a broad catalog of music, podcasts and audiobooks, along with personalized recommendations, playlists and other discovery features.
Spotify offers a subscription-based Premium service with enhanced listening features, as well as an ad-supported service available at no direct cost to users. The company generates revenue primarily through Premium subscriptions and advertising, including audio, video and display advertising delivered across its platform.
Founded in 2006 by Daniel Ek and Martin Lorentzon, Spotify is headquartered in Stockholm, Sweden, and serves listeners, creators, advertisers and other partners across markets worldwide.
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Spotify announced on Wednesday that it’s expanding audiobook access to over 180 markets worldwide, including regions across Europe, the Americas, the Caribbean, the Middle East, Africa, and Asia. The rollout is starting today and will continue over the coming months. With this move, more than 750 million users will be able to access audiobooks, allowing Spotify to better compete with both music streaming providers and audiobook apps like Audible.
Before this, audiobooks were available primarily in English-speaking markets like the U.S., U.K., Ireland, Australia, and New Zealand, as well as in Germany.
The audio platform said it has more than 350,000 titles for its new markets and has increased its collection to include over 120 languages. With its launch in Spain, users in the country will have access to over 45,000 titles in Spanish.
Spotify is working with more than 300 publishers worldwide, including Planeta and Mondadori, to increase the number of titles available in different markets.
With a Premium subscription, users can listen to 12 hours of audiobooks in eligible countries such as Brazil, Mexico, Colombia, Poland, Chile, Norway, and Peru. People across the world can also purchase an Audiobook+ standalone subscription to get access to titles with a 15-hour allowance. Alternatively, users can buy individual titles directly.
Spotify is also adding an Audiobook+ add-on for student plans in select regions in November. The company said that since its launch last year, Audiobook+ has gained over 1 million subscribers and has fetched over 100 million in annual recurring revenue for the platform.
In February, the company launched a “Page Match” feature, which lets users scan a page of a physical book and find the corresponding point in the audiobook to listen to. Since the launch, 1 million people have been using the feature monthly, the company noted.
Spotify said that over the last year, monthly listeners of audiobooks grew by 40% and listening hours increased by 30%.
This year, the company introduced Audiobook Charts to let people discover popular titles. It also launched an AI-powered tool for authors to turn their books into audiobooks using models from ElevenLabs. Plus, Spotify started experimenting with physical sales of books through its audiobook platform in select markets like the U.S. and the U.K.
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Central Pacific Bank Trust Division grew its stake in shares of Spotify Technology (NYSE:SPOT – Free Report) by 28.8% in the third quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 4,760 shares of the company’s stock after purchasing an additional 1,063 shares during the quarter. Central Pacific Bank Trust Division’s holdings in Spotify Technology were worth $2,320,000 at the end of the most recent quarter.
Other institutional investors and hedge funds have also recently made changes to their positions in the company. Montanova Capital LLC boosted its holdings in shares of Spotify Technology by 9,154.5% during the second quarter. Montanova Capital LLC now owns 101,800 shares of the company’s stock worth $46,739,000 after purchasing an additional 100,700 shares during the period. Sycale Advisors NY LLC increased its holdings in Spotify Technology by 89.6% during the 4th quarter. Sycale Advisors NY LLC now owns 36,075 shares of the company’s stock valued at $20,949,000 after purchasing an additional 17,050 shares during the period. HS Management Partners LLC bought a new position in Spotify Technology during the 2nd quarter valued at approximately $13,404,000. Ally Financial Inc. raised its position in Spotify Technology by 100.0% during the 2nd quarter. Ally Financial Inc. now owns 7,000 shares of the company’s stock valued at $3,214,000 after purchasing an additional 3,500 shares during the last quarter. Finally, Plato Investment Management Ltd purchased a new stake in Spotify Technology in the 2nd quarter worth approximately $1,363,000. Institutional investors own 84.09% of the company’s stock.
Analyst Ratings Changes Several equities analysts have recently issued reports on the company. Wells Fargo & Company reduced their target price on Spotify Technology from $600.00 to $570.00 and set an “overweight” rating on the stock in a research note on Thursday, July 9th. Cantor Fitzgerald lifted their price target on shares of Spotify Technology from $510.00 to $530.00 and gave the company a “neutral” rating in a report on Wednesday, August 5th. UBS Group decreased their price objective on shares of Spotify Technology from $690.00 to $675.00 and set a “buy” rating for the company in a report on Monday. Wall Street Zen cut shares of Spotify Technology from a “buy” rating to a “hold” rating in a research report on Saturday, July 25th. Finally, Benchmark cut their target price on shares of Spotify Technology from $695.00 to $650.00 and set a “buy” rating on the stock in a research note on Wednesday, July 22nd. One research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $592.75.
View Our Latest Stock Analysis on SPOT Spotify Technology Stock Up 2.1% NYSE SPOT opened at $482.92 on Tuesday. The firm has a market capitalization of $99.42 billion, a PE ratio of 30.07, a P/E/G ratio of 1.45 and a beta of 1.61. The stock’s 50 day moving average is $517.61 and its 200 day moving average is $493.27. Spotify Technology has a twelve month low of $405.00 and a twelve month high of $700.12.
Spotify Technology (NYSE:SPOT – Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $3.03 earnings per share for the quarter, missing analysts’ consensus estimates of $3.16 by ($0.13). Spotify Technology had a return on equity of 41.39% and a net margin of 18.44%.The business had revenue of $5.45 billion during the quarter, compared to analysts’ expectations of $5.47 billion. During the same quarter last year, the company posted ($0.42) EPS. Spotify Technology’s revenue for the quarter was up 13.9% compared to the same quarter last year. On average, research analysts anticipate that Spotify Technology will post 13.85 earnings per share for the current year.
Trending Headlines about Spotify Technology Here are the key news stories impacting Spotify Technology this week:
Positive Sentiment: UBS maintained a constructive outlook and said Spotify is expected to continue progressing toward its financial targets despite increased platform-investment costs. The bank believes new products and features can create more monetization opportunities and improve operating leverage. Its AI-powered Remix tool could launch by late 2026 or early 2027. Spotify expected to make progress towards financial targets, UBS says Positive Sentiment: UBS retained a Buy rating, indicating it still sees substantial long-term upside for SPOT. The investment case centers on differentiated products, feature innovation and stronger monetization of Spotify’s large user base. Spotify’s Differentiated Products Support Additional Monetization Opportunities Neutral Sentiment: UBS lowered its price target from $690 to $675 while keeping the Buy rating. The reduction reflects some caution around investment-related costs, but the revised target still implies meaningful upside relative to the referenced trading level. Neutral Sentiment: Spotify’s marketing and brand-engagement initiatives are drawing attention ahead of earnings. Analysts expect revenue growth but are also watching for a possible decline in earnings per share, making profitability and conversion of user engagement key investor issues. Is Spotify Prioritizing Brand Engagement Over Profit Discipline As Earnings Expectations Shift? Negative Sentiment: Consumer-demand commentary suggested some listeners may be favoring Apple Music over Spotify, raising concerns about competitive pressure and potential slowing engagement growth. A sustained shift toward Apple could weigh on subscriber growth, pricing power and monetization. Consumers Tuning Out SPOT in Favor of AAPL Insider Buying and Selling at Spotify Technology In related news, CEO Alex Norström sold 5,436 shares of the stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $502.10, for a total transaction of $2,729,415.60. Following the sale, the chief executive officer directly owned 66,773 shares of the company’s stock, valued at approximately $33,526,723.30. This represents a 7.53% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gustav Söderström sold 20,913 shares of the firm’s stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $544.19, for a total transaction of $11,380,645.47. Following the sale, the chief executive officer owned 20,025 shares of the company’s stock, valued at approximately $10,897,404.75. This represents a 51.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 47,182 shares of company stock valued at $24,677,392 over the last 90 days. Corporate insiders own 0.40% of the company’s stock.
Spotify Technology Company Profile (Free Report)
Spotify Technology SA is a global audio streaming company that operates the Spotify platform. The service provides users with access to a broad catalog of music, podcasts and audiobooks, along with personalized recommendations, playlists and other discovery features.
Spotify offers a subscription-based Premium service with enhanced listening features, as well as an ad-supported service available at no direct cost to users. The company generates revenue primarily through Premium subscriptions and advertising, including audio, video and display advertising delivered across its platform.
Founded in 2006 by Daniel Ek and Martin Lorentzon, Spotify is headquartered in Stockholm, Sweden, and serves listeners, creators, advertisers and other partners across markets worldwide.
Featured Articles Five stocks we like better than Spotify Technology NVIDIA’s Record High Raises a Bigger Question About How Far the Rally Can Run A Manufacturing Surprise Could Be a Big Win for These 2 Companies What a $1 Billion Chip Deal Says About Amazon’s AI Ambitions 3 Stocks Benefiting From AI Demand Just Announced Major Buybacks Want to see what other hedge funds are holding SPOT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Spotify Technology (NYSE:SPOT – Free Report).
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When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about Spotify (SPOT - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Spotify currently has an average brokerage recommendation (ABR) of 1.57, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 34 brokerage firms. An ABR of 1.57 approximates between Strong Buy and Buy.
Of the 34 recommendations that derive the current ABR, 23 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 67.7% and 5.9% of all recommendations.
Brokerage Recommendation Trends for SPOT
Check price target & stock forecast for Spotify here>>>
While the ABR calls for buying Spotify, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is SPOT Worth Investing In?In terms of earnings estimate revisions for Spotify, the Zacks Consensus Estimate for the current year has declined 2.6% over the past month to $13.85.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Spotify. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for Spotify with a grain of salt.
