Copyright Benzinga
Spotify Technology (NYSE:SPOT) shares climbed Wednesday after the streaming giant posted stronger-than-expected quarterly earnings and projected continued subscriber growth. The firm posted quarterly earnings of $3.83 per share, surpassing the analyst consensus estimate of a $1.87 profit. For the fourth quarter of 2025, Spotify expects revenue of $5.26 billion (4.5 billion euros). The company expects total Premium subscribers to reach 289 million. Also Read: Spotify Isn’t Afraid To Charge More Even If Its Rivals Hold Back: Daniel Ek Says, ‘Not Just A Music Service Anymore’ Rosenblatt analyst Barton Crockett reiterated the Neutral rating on the stock, lowering the price forecast from $700 to $670 Crockett said Spotify’s third quarter beat guidance on ad-based users and gross margins. He noted fourth-quarter guidance came in softer than his model, mainly on advertising revenue. Quarterly ad trends slipped to flat constant currency from 4.6% growth in the second quarter. The analyst now expects ad sales to accelerate in the second half of 2026. Spotify claims 245 million in-car listeners, equal to 34% of MAUs and 15% of hours. It also says it leads SiriusXM in car listening time. Edison’s Share of Ear for the second quarter of 2025 shows SiriusXM at 13% in-car, Spotify at 6%, contradicting that claim. Programmatic ads are rising, and he pointed to new disclosure showing auction ads account for about 13% of ad sales. He said direct sales lagged, with ads still run by interim co-heads after Spotify ousted its ad chief. Crockett argued programmatic strength supports a re-acceleration in the second half of 2026. The analyst lowered the fiscal year 2025 revenue estimate from $19.47 billion to $19.43 billion. Price Action: SPOT shares were trading higher by 0.86% to $635 at last check Wednesday. Read More: Palantir’s CTO Shyam Sankar Warns US Might No Longer Frighten Its Adversaries: ‘We’ve Lost Deterrence As A Nation’ Image via Shutterstock
