Spotify stock jumped 15% after earnings. Best quarter ever: Growth machine or margin trap?

Tuesday brought good news for Spotify shareholders. The Swedish music streaming giant’s stock soared nearly 15% in a single day, its biggest jump since 2018. The catalyst? Fourth quarter numbers that looked genuinely impressive on the surface.

Spotify added 38 million new users in three months, a company record. Total monthly listeners hit 751 million. Paid subscribers reached 290 million, up 10%. Revenue climbed to €4.24 billion. And profits? They nearly tripled year-over-year to €1.17 billion.