Spotify Shares Climb Following Third-Quarter Results and Positive Forecasts

Spotify shares rose 4.1% in pre-market trading, bolstered by a fourth-quarter operating income forecast that exceeded analyst estimates—even as third-quarter earnings fell short of expectations. Revenue grew by 16% to approximately €5 billion, the number of paid subscribers reached 306 million, and the gross margin climbed to 33%.

Additionally, Jefferies raised its price target for the stock from $600 to $620, maintaining a "buy" rating. The firm cited improvements in advertising revenue, a slowdown in the growth of operating expenses, and the potential launch of a new AI-powered product as key drivers.