From Nasdaq: 2025-06-05 14:19:00

Spotify’s user base grew by 10% in the first quarter of 2025, reaching 678 million monthly active users, with premium subscribers increasing by 12% to 268 million. The company’s focus on emerging markets like Latin America and the Rest of World is driving this growth, aiming to reach a billion users globally by 2030.

Utilizing AI technology, Spotify is enhancing user engagement with features like Spotify Wrapped and AI DJ. Management expects an additional 11 million MAUs and 5 million premium subscribers in the second quarter of 2025, showcasing optimism in attracting and retaining users amidst competition from Apple Music and Amazon Music.

Despite a 56.7% YTD stock price increase, Spotify trades at a forward P/E ratio of 60.91, above the industry average. The Zacks Consensus Estimate for 2025 earnings has declined 1.6%, with a Zacks Rank #3 (Hold) for SPOT, reflecting market expectations and performance.

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Read more at Nasdaq: SPOT’s User Engagement Surges: Will This Lead to Global Dominance?