Why Spotify Stock Jumped as Much as 11.4% Today

Spotify (NYSE: SPOT) reported better than expected fourth-quarter financial results before the market opened on Tuesday, and shares promptly jumped by 11.4%. But as the day wore on, the enthusiasm faded, and as of 1:30 p.m. ET, the stock was up by just 3.2%.

Spotify reported a 10 million subscriber increase in premium members in the quarter, beating the 8.9 million that analysts expected. Total monthly active users hit 602 million, topping estimates by 1 million.

Revenue was up 16% year over year to $3.95 billion, slightly lower than the $4.01 billion that analysts expected. But its loss was just $0.39 per share on an adjusted basis, a penny per share better than the consensus estimate.

Source Fool.com