Spotify shares gained 2.92% in the latest trading session, outpacing both the S&P 500 and the Nasdaq Composite by roughly 300 basis points. The stock has risen more than 15% over the past three months versus a 7% gain for the broader market, reflecting renewed investor interest in the streaming leader’s subscription growth and advertising initiatives. Year to date, Spotify’s shares have climbed approximately 20% following revisions to its cost structure and the rollout of new podcast monetization tools.

Analyst Eric Sheridan at Goldman Sachs upgraded Spotify to Buy in late January, citing the recent pullback as a ‘gift’ for long-term investors. Goldman Sachs forecasts fourth-quarter revenues of €3.35 billion and expects operating margins to expand by 150 basis points year-over-year, driven by cost efficiencies and higher average revenue per user (ARPU). The firm also highlighted Spotify’s growing ad-supported tier, which now accounts for 23% of total monthly active users (MAUs), up from 20% a year ago.

Following the Goldman upgrade, several independent research firms reiterated Buy ratings, pointing to accelerating subscriber growth and podcast monetization as key drivers. Spotify reported 488 million MAUs and 226 million Premium subscribers in its most recent quarterly filing, representing year-over-year growth of 18% and 14%, respectively. With fourth-quarter earnings due in early February, analysts expect the company to report a sequential uptick in ARPU to €4.12, supported by recent price adjustments in North America and Europe.