Key Highlights

● Spotify traded around $573 at midday on October 22.

● Monthly active users reached 788 million, against 758 million expected.

● Premium subscribers reached 306 million, up 6 million in the quarter.

● Fourth-quarter profit guidance topped analysts' estimates.

Spotify Technology (NYSE:SPOT) soared on Thursday, October 22, 2026, ranking among the standout gainers on the NYSE Composite after its third-quarter results showed user growth well ahead of forecasts. The shares traded around $573 at midday.

The rally was all the more striking because it came on a day when technology and communication stocks were broadly under pressure.

Users smash forecasts

Spotify reported 788 million monthly active users for the third quarter, well above the 758 million analysts had expected, a beat of about 30 million. Premium subscribers, the paying customers who generate most of its revenue, reached 306 million, an increase of 6 million in the quarter and about 1 million above forecasts.

User growth is the engine of Spotify's business. Its free, ad-supported tier funnels listeners toward paid premium subscriptions, so a big beat on monthly users suggests a larger pool of potential paying customers in future quarters.

Profit outlook impresses

Spotify, which reports in euros, posted third-quarter earnings of €2.48 a share. Revenue came in at €4.97 billion, essentially in line with the €4.98 billion estimate.

Looking ahead, the company guided to fourth-quarter profit above analysts' estimates. Its fourth-quarter revenue forecast of €5.2 billion was a touch below the €5.23 billion expected, but investors focused on the user numbers and the profit outlook rather than the small revenue gap.

The profit guidance gave investors a fresh read on how Spotify is turning its large audience into earnings.

Bucking the tech selloff

Spotify's surge came against a harsh backdrop for technology. AI and chip stocks led a sharp selloff after Meta Platforms (NASDAQ:META) outlined heavy capital spending and Lam Research (NASDAQ:LRCX) gave a supply-constrained outlook. Meta itself had its worst day since July. Communication services stocks fell, though sources differed on the size of the drop.

The Nasdaq Composite fell 694 points to 26,008.86, its steepest drop since June 5, ending a seven-session winning streak and erasing about $1 trillion in market value, according to market data. The S&P 500 lost 93.74 points to 7,663.43, its worst day since July.

On the NYSE, advancers narrowly outnumbered decliners by 1.01 to 1, with 173 new highs and 366 new lows, according to market data. About two of every three S&P 500 stocks rose, according to market reports, as money rotated into consumer staples, health care, utilities and homebuilders. Treasuries rallied, pulling the 10-year yield back below a closely watched threshold for the first time since September 22.

Netflix (NASDAQ:NFLX) also rebounded on Thursday, recovering some ground after a selloff that followed its own earnings report earlier in the week, when it cut its 2026 advertising revenue target to about $2.7 billion from $3 billion.

Spotify is domiciled outside the United States and is not a member of the S&P 500, but it is one of the larger companies listed on the New York Stock Exchange, so its moves carry weight in the NYSE Composite.

Spotify Aims to Turn Users Into Subscribers

Investors will watch whether Spotify can deliver on its fourth-quarter profit guidance and sustain its user momentum into the holiday season. Its ability to convert free users into paying subscribers will remain the key metric. Broader sentiment toward tech and media stocks will hinge on Big Tech earnings next week, including Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) on October 28 and Amazon (NASDAQ:AMZN) on October 29, as well as the Federal Reserve's policy decision on October 28.