Spotify Technology S.A., together with its subsidiaries, provides audio streaming services worldwide. It operates through two segments, Premium and Ad-Supported. The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers. The Ad-Supported segment provides on-demand online access to its catalog of music and unlimited online access to the catalog of podcasts to its subscribers on their computers, tablets, and compatible mobile devices. The company also offers sales, distribution and marketing, contract research and development, and customer support services. Spotify Technology S.A. was incorporated in 2006 and is based in Luxembourg, Luxembourg.

Spotify Technology S.A.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, значительно упал. Медведи в растерянности.

Strong index, significantly down. The bears are confused.

Сильный индекс, незначительно вырос. Рынок не поддерживает быков.

Strong index, slightly up. The market does not support the bulls.

Сильный индекс, незначительно упал. Рынок на стороне медведей.

Strong index, slightly down. The market is on the bears' side.

Средний индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Medium index, slightly up. Outflow of funds from longs at a high level.

Средний индекс, незначительно упал. Приток средств в шорты на высоком уровне.

Medium index, slightly down. Inflow of funds into shorts at a high level.

Meta Reaches Landmark Lawsuit Settlement
One of the biggest headwinds for Meta Platforms’ (META) stock has been a massive, multi-year bipartisan lawsuit that accused the company of knowingly deploying addictive and harmful product features on its social media platforms. The lawsuit, which included 47 state attorneys general, Washington, D.C., and several U.S. territories, accused Meta of harmful practices that induced addictive behavior, such as algorithmic feeds that drove endless “doom scrolling” and constant push notifications that harmed the mental health of teenagers, children, and young adults.
Because state consumer protection laws allow states to seek civil monetary penalties for each violation, the lawsuit was initially seeking up to a staggering $1.4 trillion. However, in late August, Meta reached a settlement that included algorithm changes, enhanced age verification, and daily screen time caps on Facebook and Instagram for teen accounts. Meta also agreed to an $18 billion payout over ten years. Not only was the settlement far less than initially feared, but investors can also now put this bearish headwind in the rear-view mirror.
Meta Muse has Strong Debut
Meta Muse is Meta’s autonomous personal artificial intelligence agent launched on September 8, 2026. Muse is an agentic AI platform that can perform real-world tasks on the user’s behalf while operating in the background across connected apps. Muse can perform tasks such as online shopping, travel booking, sending emails, and filling out complex forms. Muse can also convert Instagram reels such as recipes into actionable grocery lists. Additionally, Muse integrates with several popular services, including Spotify (SPOT), Google (GOOGL) Gmail, and OpenTable. Wednesday, Meta shares spiked after the company said Muse usage has “blown way past our projections,” with users engaging 10x more than its test cohorts. Muse also reached the top 5 in the App Store in under 24 hours, proving that Meta’s consumer AI push is beginning to bear fruit.
Meta Earnings Growth Returns
In 2025, Meta’s annual earnings growth slowed for the first time in three years. However, Zacks Consensus Estimates suggest a return to annual earnings growth in 2026 and 2027.
Image Source: Zacks Investment Research
Bottom Line
After a successful agentic AI debut and a favorable, high-stakes multi-year legal settlement, Meta Platforms has finally turned the corner. With core regulatory risks now in the rearview mirror and new revenue catalysts taking hold, Meta is well-positioned to restore earnings growth and reinforce its technology leadership role.
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3 Reasons Meta Has Turned the Corner

What happened
Shares of Facebook parent Meta Platforms (NASDAQ: FB) rose 3.6% on Monday, after media investment company GroupM released an intriguing growth forecast for the digital advertising market.
So what
Global ad spend excluding political ads will surge 22.5% in 2021 to a staggering $766 billion, according to Brian Wieser, GroupM's global president of business intelligence. That's up from his prior estimate of 19.2%.
Looking further ahead, Wieser sees the industry growing 9.7% in 2022. And by 2025, GroupM projects that the global ad market will expand to a cool $1 trillion.
"The advertising industry is in a ridiculously healthy state at the present time," Wieser told Adweek. "The 23% growth rate we're calling for in 2021 is possibly one of the strongest rates of growth ever for the industry."
Wieser chalked up the gains to the rise of entrepreneurship and the growth of e-commerce. Many new online businesses are focused on driving their sales growth, even if that means sacrificing near-term profitability, according to Wieser.
Now what
GroupM's projections were even better for the digital segment of the ad market. Wieser expects digital ad spend, excluding U.S. political advertising, to soar 30.5% this year and 13.5% in 2022.
GroupM anticipates that digital advertising will comprise nearly two-thirds of the overall ad industry, up from roughly 60% in 2020. And Wieser believes that Meta, along with fellow industry giants Alphabet and Amazon, could capture as much as 90% of that digital ad spending.
So although Facebook may have recently changed its name to Meta Platforms to reflect its new metaverse-focused ambitions, shareholders can take comfort in the knowledge that its core advertising business remains on solid footing.
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Why Meta Platforms Stock Rallied Today

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core MSCI EAFE ETF (Symbol: IEFA) where we have detected an approximate $808.6 million dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 1,942,200,000 to 1,950,200,000). Among the largest underlying components of IEFA, in trading today Spotify Technology SA (Symbol: SPOT) is down about 2.1%, Sea Ltd (Symbol: SE) is up about 0.1%, and Teva Pharmaceutical Industries Ltd (Symbol: TEVA) is lower by about 0.1%. For a complete list of holdings, visit the IEFA Holdings page » The chart below shows the one year price performance of IEFA, versus its 200 day moving average:
Looking at the chart above, IEFA's low point in its 52 week range is $85.025 per share, with $101.44 as the 52 week high point — that compares with a last trade of $100.72. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further IEFA Research:

IEFA, SPOT, SE, TEVA: ETF Inflow Alert

Spotify’s SPOT Premium revenues increased 15% year over year to €4.33 billion, or 16% on a constant-currency basis, supported by subscriber and monetization gains. Subscribers grew 9%, while Premium ARPU advanced 7% to €4.89. On a constant-currency basis, ARPU rose 7.4%, with price increases providing the main lift and product and market mix limiting some of the benefit.
Higher pricing is translating into stronger premium monetization without interrupting subscriber expansion. Revenue growth is thus being supported by a larger paying audience and increased revenue per subscriber. Continued pricing benefits could sustain momentum, although the mix of products and markets remains an offset to watch.
Spotify Technology Revenue (TTM)
Advertising Shows Measured Progress
Ad-Supported revenues grew 1% year over year, or 3% at constant currency. Music advertising benefited from more impressions sold, but softer pricing partly reduced that contribution. Podcasting improved through stronger sponsorship activity across Spotify’s Owned and Licensed portfolio. Automated sales channels remained the largest drivers of advertising growth, underscoring their importance as the operation evolves.
How Do Two Streaming Peers Compare?
Apple AAPL and Amazon AMZN remain peers in audio streaming. Apple benefits from tight integration between its music service and device ecosystem, while Amazon can connect streaming with Prime memberships and smart speakers. Spotify, however, relies more directly on subscriber growth, ARPU gains and advertising execution because audio anchors its business. For investors, Apple represents an ecosystem-led model, whereas Amazon demonstrates the appeal of bundled services. Spotify’s improving monetization indicates that its focused strategy remains competitive.
SPOT and AAPL currently carry a Zacks Rank #3 (Hold) each. AMZN carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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This article originally published on Zacks Investment Research (zacks.com).

Can Higher ARPU Keep Spotify's Premium Revenue Growing?

Investors in Spotify Technology SA (Symbol: SPOT) saw new options become available today, for the December 2028 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 833 days until expiration the newly available contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the SPOT options chain for the new December 2028 contracts and identified one put and one call contract of particular interest.
The put contract at the $550.00 strike price has a current bid of $116.95. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $550.00, but will also collect the premium, putting the cost basis of the shares at $433.05 (before broker commissions). To an investor already interested in purchasing shares of SPOT, that could represent an attractive alternative to paying $553.85/share today.
Because the $550.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 68%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 21.26% return on the cash commitment, or 9.32% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Spotify Technology SA, and highlighting in green where the $550.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $700.00 strike price has a current bid of $119.25. If an investor was to purchase shares of SPOT stock at the current price level of $553.85/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $700.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 47.92% if the stock gets called away at the December 2028 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if SPOT shares really soar, which is why looking at the trailing twelve month trading history for Spotify Technology SA, as well as studying the business fundamentals becomes important. Below is a chart showing SPOT's trailing twelve month trading history, with the $700.00 strike highlighted in red:
Considering the fact that the $700.00 strike represents an approximate 26% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 45%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 21.53% boost of extra return to the investor, or 9.43% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example, as well as the call contract example, are both approximately 46%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $553.85) to be 44%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Further SPOT Research:

December 2028 Options Now Available For Spotify Technology

Key Points
Airbnb maintains a high net margin while expanding its global network of unique listings.
Spotify Technology recently achieved meaningful net income while growing its massive audio streaming user base.
Which of these digital marketplace leaders is the better pick for your portfolio?
Choosing between a travel powerhouse and an audio streaming leader involves balancing profitability and growth. Investors are asking whether Airbnb (NASDAQ:ABNB) or Spotify Technology (NYSE:SPOT) offers more value today.
Airbnb dominates the short-term rental market through its unique host network, while Spotify has evolved from a music platform into a diversified audio ecosystem. Both companies rely on digital marketplaces to scale efficiently. This comparison evaluates their financials and risks to help you decide which stock fits your strategy.
The case for Airbnb
In its latest annual report, filed for the fiscal year ended December 31, 2025, Airbnb explains how it operates an online marketplace connecting millions of hosts with guests. The company is a prominent player among consumer discretionary stocks, facilitating travel experiences in 220 countries and regions. Airbnb generates revenue primarily by charging service fees on bookings and continues to innovate with AI-powered customer support.
In FY 2025, revenue reached nearly $12.2 billion, representing a growth rate of approximately 10.3% compared to the previous year. The company reported net income of close to $2.5 billion, which resulted in a net margin of roughly 20.5%. Revenue growth continues to be driven by a recovery in international travel and increased host listings across almost every country across the globe.
Regarding the balance sheet, the December 2025 data shows a debt-to-equity ratio of approximately 0.3x, which measures total debt relative to shareholder equity. The current ratio, measuring a company's ability to pay short-term debts with short-term assets, was roughly 1.4x. Airbnb generated free cash flow of about $4.6 billion, though stock-based compensation represented roughly 34.3% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense.
The case for Spotify Technology
In its latest annual report, filed for the fiscal year 2025, Spotify highlights how it provides audio streaming for music and podcasts to 777 million users. The company offers both ad-supported and premium subscription tiers to its global audience, including over 300 million premium subscribers. By expanding into audiobooks and video podcasts, it aims to become a central hub for all digital audio content.
In FY 2025, revenue reached approximately $20.1 billion, a 9.7% increase over the previous fiscal period. Spotify achieved net income of close to $2.6 billion, a significant rise that led to a net margin of roughly 12.9%. The company has focused on controlling operating costs while steadily increasing its average revenue per user through price adjustments and new tier offerings.
As of its December 2025 balance sheet, the debt-to-equity ratio was roughly 0.3x, showing a similar leverage profile to its peers. The current ratio stands at approximately 1.7x, suggesting the company maintains a healthy cushion of liquid assets. Spotify reported free cash flow of nearly $3.4 billion, which is the cash remaining after the business pays for its operations and capital investments.
Risk profile comparison
Airbnb faces a fragmented global regulatory landscape, including strict rules or bans in major cities. The company is also managing significant tax audits, including a $1.3 billion dispute with the U.S. IRS regarding international intellectual property valuation. Competitive pressure remains high from online travel agencies like Booking Holdings (NASDAQ:BKNG), which can impact market share and booking volume.
Spotify faces intense competition from large technology firms like Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) that offer competing audio services. The company must also manage the rising costs of licensing content from music labels and creators, which can pressure its net margin. Additionally, the business remains sensitive to broader economic trends that could affect consumer spending on monthly entertainment subscriptions.
Valuation comparison
Spotify currently offers a lower P/S ratio, though both companies trade at nearly identical Forward P/E multiples relative to their future earnings estimates.
Metric
Airbnb
Spotify Technology S.A.
Forward P/E
36.0x
36.9x
P/S ratio
9.2x
5.5x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Spotify generates impressive revenue from its 777 million monthly active users, including 300 million Premium subscribers. Revenue, margins, and free cash flow have all been improving. However, Spotify operates in a highly competitive audio market, facing major rivals such as Apple and Amazon, as well as smaller music, podcast, and audiobook platforms. Its long-term success will depend on maintaining subscriber growth while preserving the royalty economics that shape its margins.
Airbnb has become a popular alternative to traditional hotels and has built a highly scalable, asset-light marketplace. Because it does not own most of the properties listed on its platform, the company can grow without the capital requirements of a hotel operator. That model has supported strong margins and free cash flow, while the company continues to expand both domestically and internationally. Airbnb still faces meaningful competition from Booking Holdings and other travel platforms, as well as a significant regulatory risk: Cities can restrict short-term rentals, limiting available listings in key markets.
Even with those risks, I would choose Airbnb. Its marketplace model, strong balance sheet, and durable free-cash-flow generation give it an attractive foundation for long-term compounding. Spotify's recent improvement is encouraging, but Airbnb appears to offer the more resilient combination of profitability, capital efficiency, and growth potential.
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Airbnb vs. Spotify Technology: Which Consumer Stock Is a Better Buy in 2026?

The State Street SPDR MSCI EAFE StrategicFactors ETF is seeing unusually high volume in afternoon trading Wednesday, with over 275,000 shares traded versus three month average volume of about 26,000. Shares of QEFA were up about 0.3% on the day.
Components of that ETF with the highest volume on Wednesday were Nebius Group, trading up about 0.8% with over 4.6 million shares changing hands so far this session, and Teva Pharmaceutical Industries, up about 1.9% on volume of over 3.3 million shares. Spotify Technology is the component faring the best Wednesday, up by about 2.6% on the day, while Check Point Software Technologies is lagging other components of the State Street SPDR MSCI EAFE StrategicFactors ETF, trading lower by about 0.7%.

Wednesday's ETF with Unusual Volume: QEFA

(RTTNews) - Spotify Technology S.A. (SPOT, 639.DE, 1SPOT.MI) announced that its Board has approved an increase in its share repurchase program by an additional $1.5 billion. The increase brings the total authorization under the share repurchase program to approximately $2.223 billion.
The repurchase program will run for as long as the shareholders' authorization to the Board of Directors to repurchase ordinary shares remains in force. The repurchase program will be executed consistent with the company's capital allocation strategy. The timing and actual number of shares repurchased will depend on a variety of factors.
At last close, Spotify Technology shares were trading at $533.13 on NYSE, down 0.04 percent.

Spotify Board Approves Increase In Share Repurchase Program

Thursday, August 20, 2026
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Salesforce, Inc. (CRM), Seagate Technology Holdings PLC (STX) and AT&T Inc. (T), as well as a micro-cap stock, Daily Journal Corp. (DJCO). These research reports have been hand-picked from roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-Markets Down Despite Strong Claims, Philly Fed
Today's Featured Research Reports
Salesforce’s shares have underperformed the Zacks Internet - Software industry over the past year (-16.1% vs. -12.9%). Per the Zacks analyst, the enterprise’ spending remains vulnerable to macroeconomic swings, while intense competition in CRM and AI workflows could pressure growth. Debt-funded share repurchases have also increased leverage and interest expenses.
However, Salesforce is strengthening its CRM franchise by embedding Agentforce across Customer 360 and expanding its data capabilities through Informatica. Broader adoption of its AI and data products, combined with strong cash generation, supports growth and continued product investment.
(You can read the full research report on Salesforce here >>>)
Seagate’s shares have outperformed the Computer - Integrated Systems industry over the past year (+438.5% vs. +210.4%). The Zacks analyst believes that the company benefits from strong data center demand, HAMR adoption, disciplined pricing and growing AI-driven storage needs. Its Mozaic roadmap, manufacturing efficiencies, customer commitments and focus on shareholder returns support growth and cash generation.
Yet, stiff competition, customer concentration, premium valuation and macroeconomic uncertainty could pressure performance. Heavy reliance on data center and HDD demand also leaves Seagate exposed to shifts in spending and storage trends.
(You can read the full research report on Seagate here >>>)
AT&T’s shares have underperformed the Zacks Wireless National industry over the past year (-14.6% vs. +80.0%). The Zacks analyst believes that AT&T faces intense U.S. wireless competition, with promotional activity potentially pressuring pricing and margins. Declining legacy services and elevated capital requirements could also hinder deleveraging efforts.
On the positive side, AT&T is expanding its fiber and 5G networks while reducing long-term network costs. Its expanded fiber footprint offers more bundling opportunities, while edge computing could provide an additional competitive advantage.Top of FormBottom of Form
(You can read the full research report on AT&T here >>>)
Daily Journal’s shares have outperformed the Zacks Publishing - Newspapers industry over the last six months (+20.0% vs. -18.4%). The Zacks analyst believes that the company is evolving into a software-driven business, with Journal Technologies gaining broader adoption across government markets. Recurring or usage-based revenue enhances visibility, while a liquid, asset-rich balance sheet and positive operating cash flow provide financial flexibility.
However, legacy publishing operations face structural pressure from rising costs and weak growth. Elevated governance, remediation and legal expenses are also limiting operating leverage.
(You can read the full research report on Daily Journal here >>>)
Other noteworthy reports we are featuring today include Eaton Corp., PLC (ETN), Spotify Technology S.A. (SPOT) and MetLife, Inc. (MET).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
Axsome's (AXSM) Marketed Drugs Drive Growth Amid Stiff Competition
Per the Zacks analyst, Axsome's lead drug, Auvelity, approved for treating major depressive disorder is driving sales. The addition of Sunosi bodes well too. However, stiff competition remains a woe.
Magnolia (MGY) to Gain from Efficient Production Volume Growth
The Zacks analyst believes that Magnolia's production growth should support higher volumes and earnings, but oil and gas price volatility remains a concern.
Large User Base and Pricing Power Aid Spotify (SPOT), No Dividends Ail
Per the Zacks analyst, SPOT's Strong subscriber growth and improving pricing power ensure revenue growth, but the absence of cash dividends may deter income-focused shareholders.
Alexandria Real Estate (ARE) Aided by Leasing, Hurt by Occupancy Risks
Per the Zacks analyst, Alexandria Real Estate gains from leasing momentum, high-quality tenants and contractual rent escalations. However, lower occupancy, renewal pressure and elevated leverage ail.
Prudential (PRU) Gains on Solid Retirement Unit Amid High Costs
Per the Zacks Analyst, the company's solid retirement business has generated substantial premiums, which in turn drove the top line. However, rising expenses remain a concern.
MetLife's (MET) Cost-Cut Efforts & Strategic Buyouts Aid
Per the Zacks analyst, MetLife's cost-control measures are driving margins, while acquisitions are expanding its portfolio. However, volatile variable investment income is concerning.
New Product Development, Broad Market Reach Aid Eaton's (ETN) Growth
Per the Zacks analyst Eaton's operations in nearly 180 countries across the world and development of new products through ongoing R&D investments will continue to drive demand and boost profitability.
New Upgrades
Darling Ingredients (DAR) Strengthens Growth Through Core Efficiency
Per the Zacks analyst, Darling's core ingredients platform is gaining momentum from operational efficiency, commercial optimization and contract management, supporting stronger margins and growth.
Ichor (ICHR) Rides on AI and Semiconductor Demand
Per the Zacks analyst, rising AI-driven semiconductor demand, stronger customer visibility and growing proprietary content are supporting Ichor's revenue and margin growth.
Leggett & Platt (LEG) Gains From Restructuring & Cost Control Efforts
Per the Zacks analyst, Leggett & Platt benefits from restructuring, metal-margin expansion and portfolio simplification. Cost actions and a leaner balance sheet support profitability and earnings.
New Downgrades
High Costs, Volatile Iron Ore Price Ail National Steel (SID)
The Zacks analyst is concerned that the recent volatility in iron ore prices, along with rising costs for raw materials, energy, and freight, will weigh on National Steel's margins.
Elevated Expenses, Poor Asset Quality to Hurt BankUnited (BKU)
Per the Zacks analyst, persistently rising costs due to investments in technology are expected to hurt BankUnited's profits. Also, rising provisions make us apprehensive about the company's growth.
Rigetti (RGTI) Faces Rising Losses, Execution Risks Amid Quantum Push
Per the Zacks Analyst, Rigetti faces rising losses, execution and dilution risks, though cloud expansion, Novera sales, government ties and a solid cash position support longer-term potential.
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AT&T Inc. (T) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).

Top Stock Reports for Salesforce, Seagate Technology & AT&T

Spotify Technology S.A. SPOT shares have gained 12.5% over the past four weeks, renewing attention on whether improving operating performance can support further upside.
A record gross margin, subscriber growth and better monetization strengthen the fundamental case. Still, a premium valuation, softer estimate revisions and planned reinvestment leave little room for execution slippage.
SPOT's Profit Engine Is Gaining Traction
Second-quarter revenues rose 15% year over year at constant currency. Gross margin reached a record 33.4%, while operating income climbed 61% to €655 million.
Free cash flow was €797 million in the quarter and reached €3.3 billion over the trailing 12 months. That cash profile gives Spotify more flexibility to fund product investment while preserving balance-sheet strength.
Spotify's Subscriber Base Keeps Expanding
Spotify ended the second quarter with 777 million monthly active users, up 12% year over year, while Premium subscribers increased 9% to 300 million.
The company added seven million Premium subscribers, one million above guidance. Management expects 305 million Premium subscribers in the third quarter, extending the growth trajectory even as it adjusts the free-user experience in selected emerging markets.
SPOT's Pricing Power Supports Monetization
Premium revenues increased about 16% year over year at constant currency. Subscriber gains were accompanied by a 7.4% increase in Premium average revenue per user, excluding currency effects.
Management expects the third-quarter average revenue per user increase to remain consistent with the second quarter. If retention holds, pricing and conversion gains could allow revenues to expand faster than the subscriber base alone.
Spotify's Valuation Raises the Bar
SPOT trades at 32.08X forward earnings versus 27.33X for its industry. That premium makes the stock more sensitive to any shortfall in subscriber growth, monetization or margin expansion.
The latest quarter produced a 7.3% negative earnings surprise, while the Zacks Consensus Estimate for 2026 earnings declined 1.5% over the past four weeks. Those revisions add another reason for investors to demand consistent execution.
SPOT's Near-Term Risks Could Test the Rally
Management expects marketing and artificial intelligence initiatives to add about €200 million of operating expenses in 2026. Third-quarter gross margin is projected at 32.9%, below the second-quarter record, while monthly active user additions are expected to slow to 11 million from 16 million.
Competition remains intense. Apple Inc. AAPL offers Apple Music both as a standalone service and through Apple One. Amazon.com, Inc. AMZN offers Amazon Music Unlimited and a music benefit within Prime. Spotify must keep improving engagement and monetization while funding product differentiation.
Spotify's Mixed Style Scores Temper the Setup
The 12.5% four-week gain has fundamental support from stronger profitability, subscriber scale and pricing. The valuation premium and near-term spending requirements, however, keep the risk-reward profile balanced rather than clearly favorable.
SPOT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Spotify’s Growth Score of A points to favorable growth characteristics, but the Value Score of D and Momentum Score of F are weaker. The VGM Score of C reinforces a middle-ground profile, suggesting investors may want further evidence of sustained execution before taking a more aggressive view.
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Periodand min./max. price, $	Price change, %		Volatility, %		Volume, $
Periodand min./max. price, $	SPOT	Industry	SPOT	Industry	Volume, $
Yesterday 523.1 - 531.3	-1.10	5.69	4.37	1.15	370.04M
Week 507.8 - 563.6	-6.25	5.11	4.17	4.91	2.47B
Month 483.5 - 576.0	7.37	8.26	8.11	11.61	12.05B
3 Months 438.7 - 576.0	7.78	14.66	14.52	17.64	38.96B
6 Months 411.2 - 576.0	1.96	2.42	30.25	26.01	82.23B
Year 408.1 - 745.0	-24.59	14.37	43.86	35.22	190.55B
3 years 145.8 - 785.0	240.69	7.55	72.74	66.62	425.56B
5 years 69.3 - 785.0	112.10	35.19	106.36	96.39	506.16B
All time 69.3 - 389.5	147.12	18.82	—	—	282.34B

Spotify Technology S.A.

Price and volatility history

Risk ratios