Earnings season is upon us, with many stocks reporting their financial results for the three months ending in June. One stock to watch closely is Spotify (NYSE: SPOT). The market was impressed when the company released its second-quarter earnings last week, sending shares up over 10% the day of the report. Combine a fast-growing user base with numerous new monetization strategies and it is no surprise that investors are optimistic about Spotify's prospects.

Should you buy shares of Spotify after its latest earnings rip? Let's investigate.

Spotify released its Q2 results on July 27. Monthly active users (MAUs), a key metric for measuring engagement, hit 433 million, up 19% year over year. This was significantly ahead of Spotify's own expectations of 428 million MAUs. With the service opening up in 85 new markets last year, including large ones across Africa and Asia, it is nice to see user growth accelerate. Eventually, management thinks Spotify can hit 1 billion or more MAUs, with a target of reaching this milestone by 2030.

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Source Fool.com