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Most investors would be wary of attempting to buy a stock near its highs, and much less after a recent run to the upside, thinking that they can get the proverbial rug pulled from under them. However, sometimes the fundamental picture provides enough evidence and justification to let investors buy into a rally without worrying about a top and turn. This could be the case for shares of Spotify Technology NYSE: SPOT, as the stock is up over 8% in a single day after the company reported its latest quarterly ea ...

Spotify is going after YouTube's video podcast dominance with a new revenue program for creators.It will soon share revenue with creators based on how much their videos are viewed.The company will also no longer insert ads into video podcasts shown to paid subscribers. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Go to newsletter preferences Thanks for signing up! Access your favorite topics in a pe ...

Core Insights - Spotify's third-quarter results indicate strong momentum and the achievement of long-term strategic goals, with a notable increase in key metrics [1][2] - Monthly active users rose by 11% to 640 million, subscribers increased by 12% to 252 million, and total revenue grew by 19% to €4 billion ($4.2 billion) [2] Growth and Strategic Focus - The company has made necessary adjustments to focus on cost efficiency while continuing to transform its business, including expanding into audiobooks and launching new subscription tiers [3] - User engagement has been a key driver of success, with new features like music videos for Premium users leading to higher retention rates [3] Technological Innovations - The introduction of AI-powered features, such as the AI Playlist and daylist, enhances user experience and personalization [4] - Spotify's partnership with Google Cloud has been leveraged to improve personalized recommendations through advanced AI tools [5] Engagement and Marketing Strategies - The company emphasizes increasing user engagement and reducing churn, with AI playing a significant role in these efforts [6] - Marketing efforts have been optimized, with increased spending justified by improved efficiency and favorable customer acquisition cost-to-lifetime value ratios [8]

Spotify CEO Daniel Ek has once again teased the company’s long-delayed HiFi or “super premium” tier, a higher-qualify subscription offering the streaming service first announced in 2021 and then failed to roll out. In the company’s third-quarter earnings call with investors on Wednesday, the exec suggested that such a product was still on the way, while touting the company’s near-term advances in other areas, including a coming expansion of its video offerings and other products enhanced by AI. The streame ...

Spotify is firing on all cylinders and may be nearing a growth inflection point.Spotify's (SPOT 10.80%) earnings were strong once again, as the company's focus on profits and cash flow paid off. But it was the level of margin expansion that shocked investors. In this video, Travis Hoium shows where the company is winning and where there's still opportunities ahead.*Stock prices used were end-of-day prices of Nov. 12, 2024. The video was published on Nov. 12, 2024. ...

Shares of Spotify Technology SA SPOT were climbing Wednesday after the company reported upbeat third-quarter earnings.Here are some key analyst takeaways.Macquarie Equity Research analyst Tim Nollen maintained an Outperform, while raising the price target higher from $395 to $500.Goldman Sachs analyst Eric Sheridan reiterated a Buy, while lifting the price target from $430 to $490.Bank of America Securities analyst Jessica Reif Ehrlich reaffirmed a Buy rating, while raising the price target from $430 to $51 ...

About this content About William Farrington William kickstarted his career as a researcher and reporter for a global legal publication, covering everything from public law to M&A. Before moving to Proactive Investors, he worked as a reporter for a major fintech company with a focus on cryptocurrency and blockchain technology. Harking from Queensland, Australia, William obtained first-class honours in journalism and media from Birkbeck University before going on to complete an MA in creative and critical ...

Key TakeawaysSpotify shares jumped in extended trading on Tuesday after the streaming media giant topped Wall Street’s third-quarter subscriber growth estimates and issued a better-than-expected profit outlook.The stock has continued to track higher after retesting the top trendline of an ascending triangle, though an RSI reading over 70 signals overbought conditions.A bars pattern, which extracts the stock’s upward trend from January to April and repositions it from the ascending triangle’s top trendline, ...

Financial Data and Key Metrics - MAU grew by 14 million to 640 million, and 6 million net subscribers were added, reaching 252 million, both outperforming guidance by 1 million [14] - Total revenue grew 21% YoY on a constant-currency basis to EUR4 billion, with premium revenue rising 24% YoY [14] - Advertising business saw currency-neutral growth of 7% YoY, reflecting volatile market spending on brand-related campaigns [14] - Gross margin reached a record 31.1%, surpassing guidance by 90 basis points, primarily due to content cost favorability [15] - Operating income set a new record at EUR454 million, impacted by EUR54 million in social charges [15] - Free cash flow reached a record EUR711 million, driven by improved operating income and net working capital favorability [16] Business Line Performance - Premium revenue growth was driven by subscriber growth and ARPU acceleration due to price increases [14] - Advertising revenue growth was slower than MAU growth, with advertising revenue shrinking from over 14% of total revenue to under 12% [29] - Audiobooks saw strong adoption, with more than five hours of additional consumption per user in the US [32] Market Performance - The company expects Q4 MAU to reach 665 million, an increase of 25 million from Q3, and 260 million subscribers, an increase of 8 million [17] - Q4 revenue is forecasted at EUR4.1 billion, with gross margin expected to be 31.8% and operating income at EUR481 million [18] - Foreign exchange rate movements created a larger-than-expected headwind, impacting Q4 outlook by approximately EUR80 million [17] Company Strategy and Industry Competition - The company is focused on balancing growth and profitability, with a strong emphasis on monetization and cost efficiency [7][9] - Spotify is expanding into new areas such as audiobooks, video, and AI-driven innovations to enhance the platform and deepen user value [10][11] - The company is committed to long-term goals shared at Investor Day, with a focus on bold innovation and relentless pursuit of new opportunities [12] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the current technology landscape, particularly AI, and sees it as a transformative opportunity [10] - The company is focused on delivering exceptional value to users, which drives sustainable growth for all stakeholders [11] - Management expects further progress across key metrics in Q4, setting up a strong foundation for growth and profitability expansion in the coming years [10] Other Important Information - The company has a strong balance sheet with EUR6.1 billion in cash and equivalents and EUR1.3 billion in exchangeable debt [21] - Spotify is piloting a Spotify Ads Exchange and working with demand-side platforms like The Trade Desk to diversify its advertising business [26][29] Q&A Session Summary Question: Capital Allocation - The company is focused on LTV over SAC ratio and will continue to invest in growth areas like audiobooks to drive sustainable profitability [22] Question: Gross Margin Performance - Gross margin improvement was driven by marketplace program development, streaming and delivery cost scaling, and US publishing rate favorability [23] Question: 2025 Drivers - Incremental leverage in 2025 will come from marketplace, bundling, price increases, podcast improvements, and new initiatives like audiobooks [24] Question: Pricing Strategy - Spotify is a price leader in many markets and focuses on adding value to consumers, which allows for future price increases [25] Question: Advertising Business - The company is diversifying its advertising business by building its own ad exchange and moving towards performance-based ad services [26][42] Question: Super Premium Product Offering - Spotify is exploring higher-priced music tiers to address super fans, focusing on consumer value and creator needs [27] Question: 2025 Growth Story - 2025 will be about growth with profitability, driven by technology advancements and adding value to consumers [28] Question: Video Podcasting - Spotify is focused on solving real creator and consumer needs, with an upcoming video event to showcase new innovations [36] Question: Ad-Supported Tier - The company is open to evolving its ad-supported tier but notes the regulatory and industry differences between music and video [38] Question: Revenue Growth - Spotify aims for 20% annual revenue growth, driven by user growth and monetization, with advertising and subscription business as key levers [40] Question: AI and New Features - AI DJ and music videos have significantly improved user engagement and retention, showcasing the strength of Spotify's innovation [45] Question: Competitive Landscape - Spotify feels confident about its growth rates relative to competitors like Apple Music [49]