Spotify shares rise 12% on earnings and AI outlook
Spotify shares climbed as much as 12% following the release of third-quarter results and a positive outlook on its AI strategy. The company reported nearly 5 billion euros in revenue and 306 million paid subscribers.
Spotify reported Q3 revenue of nearly 5 billion euros and 306 million paid subscribers, a 2% increase. The company provided a positive outlook, stating it is well-positioned for a new AI future. The stock rose up to 12% on the news. This performance contrasts with Apple Music, whose subscriber count is estimated at 116 million, down from 60 million in 2019, though Apple does not disclose specific figures. Apple's total services revenue, including iCloud and App Store, is $109 billion. The segment's growth is attributed to the legacy of the iPod, launched 25 years ago, which sold 450 million units and generated $68 billion in revenue between 2001 and 2014, laying the foundation for the modern streaming industry.