Why Spotify Technology (SPOT) Is Skyrocketing?

We recently published a list of 10 Stocks Jump on Impressive Earnings, Bullish Outlooks. In this article, we are going to take a look at where Spotify Technology S.A. (NYSE:SPOT) stands against other stocks that have surged on impressive earnings and bullish outlooks.

The stock market ended firmer on Tuesday, with all of Wall Street’s main indices finishing in the green territory amid news that President Donald Trump temporarily delayed the imposition of tariffs against Canada and Mexico.

The Dow Jones inched up by 0.30 percent, while the S&P 500 and Nasdaq both jumped 0.72 percent and 1.35 percent, respectively.

On Tuesday, 10 companies under mixed sectors mirrored the broader market rally, fueled by impressive earnings results and optimistic business outlooks, among others. This article details the reasons behind the top gainers’ impressive performance.

To come up with Tuesday’s top gainers, we only considered those with $2 billion in market capitalization and $5 million in daily trading volume.

A person wearing headphones listening to an audio streaming service.

Spotify Technology S.A. (NYSE:SPOT)

Shares of audio streaming giant Spotify Technology S.A. (NYSE:SPOT) soared by 13.24 percent on Tuesday to finish at $621.77 apiece as investors cheered the company’s swing to profitability last year.

In a statement on its website, Spotify (NYSE:SPOT) said it achieved a 16-percent increase in revenues at €4.2 billion while operating income settled at €477 million.

Monthly active users also increased by 12 percent year-on-year to 675 million, while its total subscribers jumped 11 percent to 263 million.

Given the promising earnings performance, Spotify (NYSE:SPOT) said it was confident about its business outlook for 2025.

“I am very excited about 2025 and feel really good about where we are as both a product and as a business,” said Spotify CEO Daniel Ek. “We will continue to place bets that will drive long-term impact, increasing our speed while maintaining the levels of efficiency we achieved last year. It’s this combination that will enable us to build the best and most valuable user experience, grow sustainably, and deliver creativity to the world.”

Overall, SPOT ranks 2nd on our list of stocks that have surged on impressive earnings and bullish outlooks. While we acknowledge the potential of SPOT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SPOT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.