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Featured Story from MarketBeat.com Spotify Posts Huge EPS Beat: Shares Are Still Down Big From HighsWritten by Leo Miller. Published 11/5/2025. 
Key Points - Spotify is getting ready to introduce not one, but two new CEOs to replace the firm's pioneering founder.
- See why Spotify's massive EPS beat didn't lead shares to move higher.
- SPOT remains down nearly 20% from highs, and its ad-supported customer base provides a significant growth opportunity.
Spotify Technology (NYSE: SPOT) has long dominated music streaming, cementing its status as a top growth stock in digital entertainment. After tumbling 66% in 2022, shares have risen by nearly 700% through the Nov. 4, 2025 close. Porter Stansberry and Jeff Brown say a new U.S. national emergency is already underway — and it could trigger the biggest forced rotation of capital since World War II.
They reveal why Trump is mobilizing America's tech giants… and name the two stocks most likely to soar as trillions shift behind the scenes. Watch the National Emergency broadcast here While still about 19% below its all-time high from June, recent developments—including a CEO transition and an earnings beat—could reshape the company's trajectory. The firm recently announced that its long-time Chief Executive Officer, Daniel Ek, is stepping down. Below, we'll examine that leadership change and Spotify's latest earnings results, and what they mean for investors moving forward. Spotify's Leadership Shakeup: From Visionary Founder to Collaborative Approach On Jan. 1, 2026, Gustav Sӧderstrӧm and Alex Norstrӧm will become co-CEOs of Spotify, succeeding Daniel Ek, who founded the company and led it since 2006. Ek's impact on the music industry is hard to overstate. Apple (NASDAQ: AAPL) didn't launch Apple Music until 2015, by which time Spotify already had more than 70 million users. That early lead helped establish Spotify as the dominant streaming platform. Ek's departure appears not to be performance-related; he will remain on the board as executive chairman. That continuity, plus the fact that both Sӧderstrӧm and Norstrӧm have been with Spotify for more than 15 years, should help limit disruption during the transition. It's difficult to predict exactly how the CEO change will affect Spotify. Investors reacted cautiously, with shares falling roughly 4.2% on the day the announcement was made. The leadership change is worth watching, but it should not necessarily alarm long-term investors. Spotify Posts Huge EPS Beat, But Profitability Caveats and Guidance Weigh on Shares Spotify reported solid results for Q3 2025. Revenue was €4.53 billion (approx. $5.02 billion), up 7% and modestly above estimates of €4.23 billion (approx. $4.86 billion). Profitability metrics drove the headline: diluted EPS came in at €3.34 (approx. $3.83), well above expectations of €1.96 (approx. $2.25). That represents a beat of €1.38 (about $1.58) and reflected both gross- and operating-margin expansion. Gross margin rose 53 basis points to 31.6%, about 50 basis points better than the company's guidance, while operating margin improved by 220 basis points to 13.6%. There are important caveats, however. Management said much of the gross-margin outperformance stemmed from a one-time change in estimates to "rights holder liabilities," an accounting adjustment that doesn't necessarily reflect improved underlying product economics. And roughly 40% of the operating-margin improvement was due to lower-than-expected "social charges" — taxes tied in part to the company's stock price. Because shares declined during the quarter, these charges fell, artificially boosting operating margin. In short, the EPS beat was real but partially inflated by accounting and timing effects. Those caveats tempered investor enthusiasm. Although Spotify beat user estimates by about 3 million, its Q4 revenue guidance of €4.5 billion (approx. $5.17 billion) came in lighter than expectations, and shares fell about 3.4% after the earnings release. SPOT's Ad-Supported Opportunity Remains Compelling Spotify's ad-supported tier is still under-monetized. While about 63% of its total user base is on the ad-supported service, that cohort generated only roughly 10% of total revenue in Q3. Extracting more revenue from ad-supported listeners would be a meaningful growth lever for the company. To that end, management is revamping Spotify's ad-supported monetization strategy and expects that portion of the business to accelerate in the second half of 2026. With shares well off their highs and several large opportunities ahead — particularly around ads — Spotify's longer-term outlook remains constructive, though investors should watch execution and how management translates strategy into sustainable margin expansion.
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