SPOT: Spotify Stock Celebrates Birthday with 11% Jump as Investors Play to the Tune of Record Profits

Music streamer’s earnings showed that profits are every investor’s jam.

• Spotify stock SPOT turned up the volume by gaining 11% on Tuesday, following the music streamer’s earnings report for the first quarter. Released before the opening bell, the results showed that Spotify swung to a record quarterly profit of €197 million ($210 million), or €0.97 a share. A comfortable beat after a bruising €225 million loss, or €1.16 a pop for the year-ago quarter. Party time? Yes.
• The Swedish company just turned 18 on April 23, and what better way to celebrate than to show investors it can spin up profits? After some long dry spells that had investors losing interest, shares of Spotify are up 60% on the year. If the music company keeps hitting the profit chord, it will meet its 2024 growth target.
• Other figures from the earnings report include €3.64 billion in revenue, topping estimates and coming above the €3 billion from the year-ago quarter. The company added 3 million paying customers over the first three months of the year to a total of 239 million. Monthly active users rose to 615 million, up 19% from last year’s first quarter. Spotify recently announced price hikes and layoffs in efforts to cut costs and boost profits.