As Spotify Launches Book Sales, Should You Buy, Sell, or Hold SPOT Stock?

Core Insights - Spotify is the leading music streaming service with over 100 million songs, 7 million podcasts, and 350,000 audiobooks, serving 713 million monthly users, including 281 million paid subscribers [1][2] Financial Performance - In Q3 2025, Spotify reported a 12% year-over-year revenue increase to €4.3 billion ($4.99 billion), surpassing analyst expectations of €4.23 billion [6] - Earnings per share (EPS) reached €3.28 ($3.84), exceeding forecasts of €1.97 ($1.87) by over 66%, and up from €1.54 last year [6] - Premium subscribers grew by 12% to 281 million, while monthly active users increased by 11% to 713 million, beating the estimated 710 million [7] - Gross margin improved to 31.6%, operating income reached €582 million, and free cash flow was €806 million, indicating strong cash generation [7] Future Guidance - For Q4, Spotify projects revenue of €4.5 billion, which is below the estimated €4.56 billion, and expects premium subscribers to reach 289 million, slightly under the 291 million estimate [8] - Monthly users are expected to rise to 745 million, exceeding the estimate of 739.5 million, with an operating income outlook of €620 million [8] Stock Performance - Spotify's stock has experienced a significant decline, dropping 16% over the past five days, 27% in the last month, 32% over three months, and 37% in six months [3] - Year-to-date, the stock is down 28%, with a 52-week return of -32%, trading 47% below its 52-week high of $785 [3] - Compared to the Russell 1000 Index, Spotify's performance has lagged, with a 32% drop over 52 weeks against the index's 43% rise [4]