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Spotify Stock Rises After Upgrade — Here’s Why I’m Looking to Buy Before Earnings

Hey friends,

Let me cut straight to it.

Spotify just got an analyst upgrade, and its stock is making moves — upward. Now, I don’t chase every stock that jumps, but this one caught my eye. Not because of the hype… but because of the timing. With earnings just around the corner, Spotify might be sitting on a big opportunity — one that could reward early investors.

Today, I’m going to break down why Spotify just got upgraded, what makes it exciting right now, what the risks are, and how I personally would play this before earnings.

Let’s dive in.

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First, What’s the Big Deal With Spotify’s Upgrade?

If you’ve ever used Spotify to stream music, you’re already part of the story.

But here’s the money part: an analyst from a major Wall Street firm recently upgraded Spotify's stock rating — moving it from Hold to Buy. That basically means they now believe the stock will go up in price more than expected. And that triggered a wave of interest from investors.

Why the sudden optimism?

Here are the key reasons that stood out:

• Improving margins: Spotify has been cutting costs, increasing prices, and getting better at turning revenue into profit.

• User growth: They’re still gaining subscribers around the world, despite competition from Apple, Amazon, and YouTube.

• Podcast and ad potential: This part of the business has been misunderstood and undervalued — but that may change soon.

When analysts change their views, especially before earnings, it usually means they’ve seen something promising in the numbers.

Why I Think Spotify Is More Than Just a Music App

Let’s zoom out a little.

Spotify isn’t just where people stream Taylor Swift or Coldplay. It’s becoming a global audio empire.

The company has over 600 million users, including nearly 240 million premium subscribers — people who pay monthly. That’s a huge, loyal base. And once someone’s in the habit of using Spotify every day, they rarely leave. (I know I don’t.)

But here’s what excites me:

• Spotify has built the largest podcast platform in the world.

• They're now moving into audiobooks — a business Amazon’s Audible has dominated for years.

• They’re launching AI-powered tools that change how users interact with music and content.

This shows me they’re not just staying still. They’re innovating. They’re experimenting. And they’re doing it all while tightening expenses.

What the Upgrade Actually Means for Us as Investors

An upgrade is like a green light. It doesn’t guarantee anything, but it signals confidence from pros who have deep insight into a company’s inner workings.

In this case, the analysts are saying:

And that’s the key. Spotify is finally moving closer to consistent profitability.

They were once known as the tech company that couldn’t make money. Now? That story is changing — fast.

Here’s Why Earnings Could Be a Game-Changer

Let’s talk about the upcoming earnings report.

If Spotify posts stronger-than-expected revenue growth, higher margins, or shows it’s closer to long-term profitability, the stock could pop. Investors love good earnings stories — especially when a turnaround is involved.

Here’s what I’ll be watching for:

1. Subscriber growth — Are more people paying for Spotify?

2. Ad revenue — Is their podcast and ad business starting to contribute meaningfully?

3. Profit margins — Are they making more money per user?

4. AI features and cost efficiency — Are they doing more with less?

If Spotify shows even two out of four, I believe we’ll see another leg higher in the stock price.

My Favorite Spotify Growth Drivers Right Now

Let’s break this down into simple pieces. Here’s what excites me most about Spotify moving forward:

1. Price Increases Without Losing Users

Spotify recently raised prices in multiple markets, including the U.S.

The best part? Most users didn’t cancel. That’s huge. It means Spotify has pricing power — a sign of strong customer loyalty.

And that extra revenue goes straight to the bottom line.

2. Podcasts May Finally Pay Off

Spotify invested over $1 billion into podcasting — signing big names like Joe Rogan and building its own advertising tech.

For a while, investors hated this move.

But guess what? Ad revenue from podcasts is now growing. If that trend continues, podcasts could become a serious money-maker.

3. Audiobooks = A Hidden Gem

Spotify launched audiobooks in late 2023. At first, it looked like a side project.

But I think it’s a genius move.

The audiobook market is worth billions, and most people still buy through Audible. If Spotify can bundle audiobooks into its monthly subscription, they could eat into Amazon’s pie.

And remember — bundling boosts user stickiness and pricing power.

4. Global Expansion Still Has Room to Run

Spotify is in over 180 markets, but it’s still growing rapidly in regions like:

• Southeast Asia

• Latin America

• Africa

• India

In many of these places, smartphones and internet access are just hitting the mainstream. As more people come online, guess what they’ll do?

Stream music. And Spotify is often their first choice.

What Could Go Wrong? Let’s Be Real

Okay — let’s pause the hype for a moment.

Every investment has risk. Spotify isn’t perfect.

Here are a few things that could derail the stock:

1. Competition: Apple Music, YouTube Music, and Amazon all have deep pockets.

2. Licensing fees: Spotify doesn’t own the music — they have to pay the record labels.

3. Ad slowdown: If the global economy weakens, ad spending could drop.

4. Subscriber churn: If prices rise too fast, some users might cancel.

Still, these risks aren’t new. And Spotify has shown it can navigate them while still growing.

So, Should You Buy Spotify Before Earnings?

Let me tell you what I’m doing.

I’ve started building a small position ahead of earnings. Why?

Because I think expectations are still low. And when a company surprises to the upside — especially one that’s been punished in the past — the stock can fly.

Now, I’m not betting the farm. But I like this setup:

• Strong analyst upgrade ✅

• Cost cuts working ✅

• New product verticals ✅

• Possible earnings surprise ✅

If you’re long-term focused and willing to ride some ups and downs, this might be a smart spot to enter.

A Quick Reminder About Timing

I never try to perfectly time the bottom.

That’s why I often dollar-cost average into positions — buying small amounts regularly, especially during volatility.

If you believe in Spotify long-term, getting in before earnings — while riskier — can also reward you if the report beats expectations.

And even if the stock dips, you’ll have a chance to average down later.

Final Takeaways

Let me sum this up for you in five quick points:

📌 1. Spotify is transforming from a money-losing app into a profit-focused tech company.

📌 2. A recent upgrade shows Wall Street is starting to believe in that story.

📌 3. The upcoming earnings report could confirm the turnaround — and drive stock gains.

📌 4. I’m personally nibbling now and plan to add more if Spotify executes.

📌 5. This is a long-term play on global audio dominance — not just a trade.

Thanks for reading, my friend.

Spotify isn’t just a place to listen to music anymore. It’s building an audio empire — and investors are finally starting to notice.

If you’ve been waiting for a tech stock that’s not already priced for perfection like Nvidia or Apple… Spotify could be your chance to get in early, before the crowd wakes up.

As always, do your own research. But if you believe in the story — and the numbers back it up — don’t be afraid to take that first step.

Until next time,

[Live Life Grow Wealth]

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DISCLAIMER

I make no representations, warranties, or guarantees, whether expressed or implied, that the content provided is accurate, complete, or up-to-date. Past performance is not indicative nor a guarantee of future returns.

I am an individual content creator and not regulated or licensed by the Monetary Authority of Singapore (MAS) as I do not provide investment services.

All forms of investments carry risks, including the risk of losing your entire invested amount. Such activities may not be suitable for everyone. You are strongly encouraged to seek advice from a professional financial advisor if you have any doubts or concerns.