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Spotify’s Margin Expansion Sustains Bullish Thesis Despite Mixed Q3 Results

Spotify’s Margin Expansion Sustains Bullish Thesis Despite Mixed Q3 Results

Published:
2025-11-13 02:26:02
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BTCCSquare news:

Spotify's 60% year-to-date rally hit a speed bump after Q3 earnings, with tech sector profit-taking and ad revenue concerns driving the pullback. The market's reaction appears overblown—ARPU weakness stems from strategic reclassification rather than structural issues.

The Core bullish narrative remains intact: Spotify's transformation from low-margin music distributor to multi-platform audio service continues unlocking value. Margin expansion, the linchpin of the platform transition thesis, shows no signs of deterioration.

While near-term volatility persists in tech stocks, Spotify's long-term growth trajectory justifies maintaining buy ratings. The company's ability to monetize its ecosystem outweighs transient metric fluctuations.

|Square

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