Spotify $SPOT (Spotify Technologies SA) and Alphabet $GOOG (Alphabet) both saw strong revenue growth, but their market reactions were very different. Spotify’s stock surged after reporting its first full-year profit, while Alphabet’s stock dropped due to concerns over its cloud business.
Key Numbers
- Spotify: Revenue grew 16% to €4.2B ($4.3B), with 675M users (+12%) and a €1.14B ($1.17B) profit.
- Alphabet: Revenue rose 12% to $96.5B, with $20.7B in profit, but Google Cloud’s 30% growth was below expectations.
Market Reactions
- Spotify’s stock jumped 7% as investors liked its profitability and strong user growth.
- Alphabet’s stock fell 8.8% due to concerns over its cloud business and big AI spending.
What’s Next?
- Spotify: Focuses on making more money from users with price hikes, ads, and AI-powered content.
- Alphabet: Plans to spend $75B on AI and cloud growth, but investors want proof it will pay off.
Spotify exceeded expectations and proved it can be profitable. Alphabet needs to show better cloud and AI results.
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