Spotify and Dave are both contenders for market dominance. Let us find out which disruptive app stock does it better.
Spotify (SPOT) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).
This year has been a rollercoaster on Wall Street. The major stock market indexes have given back all of their early-year gains -- and then some.
Spotify's Q1 2025 results reinforce my bullish thesis: 15% YoY revenue growth, 32% gross profit growth, and a 203% surge in operating income. Subscriber growth exceeded expectations by 2 million, and CEO Daniel Ek envisions scaling to 1 billion subscribers, tripling current levels. With 1 billion subscribers at $12/month, Spotify could generate $144 billion in revenue, implying a $390 billion market cap—nearly 3x current valuation.
The world may be an uncertain place, but people still want to listen to music. So says Spotify CEO/Founder Daniel Ek, who said Tuesday (April 29) that his platform's streaming music, audiobooks and podcast offerings continue to draw users in the face of global economic upheaval.
Spotify Technology S.A. (NYSE:SPOT ) Q1 2025 Earnings Conference Call April 29, 2025 8:00 AM ET Company Participants Bryan Goldberg - Head of Investor Relations Daniel Ek - Co-Founder and Chief Executive Officer Gustav Soderstrom - Co-President, Chief Product and Technology Officer Alex Norstrom - Co-President, Chief Business Officer Christian Luiga - Chief Financial Officer Operator Welcome to Spotify's First Quarter 2025 Earnings Call and Webcast.
Spotify Technology SA (NYSE:SPOT) shares slumped as the music streaming platform's first quarter earnings and profit forecast fell short of analyst expectations, despite strong subscriber growth. For Q1, earnings per share of €1.07 were significantly lower than the €2.33 expected, mainly due to higher-than-expected employment taxes tied to the sharp rise in its stock price over the past year.
Spotify reported on Tuesday that its premium subscriber base grew by 5 million in the first quarter, representing a 12% increase year-over-year. This brings the total to 268 million, marking the second-highest total ever and the highest net addition of paid subs for a first quarter since 2020.
While the top- and bottom-line numbers for Spotify (SPOT) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
“There's a lot of uncertainty in the world, and when volatility rises, it's natural to ask who might be affected and how,” said Spotify CEO Daniel Ek kicking off a call with analysts. “I see Spotify faring better than most.
Spotify Technology SA (NYSE:SPOT) stock is 4.8% lower at $568.90 before the bell, after the streaming giant reported first-quarter operating income of 509 million euros, missing analyst estimates of 519.9 million euros, per FactSet.
Spotify (SPOT) came out with quarterly earnings of $1.13 per share, missing the Zacks Consensus Estimate of $2.29 per share. This compares to earnings of $1.05 per share a year ago.