Spotify Shares Jump 6% as 2030 Margin Target Reaches 35%-40%
Updated
Updated · CNBC · May 21
Spotify Shares Jump 6% as 2030 Margin Target Reaches 35%-40%
1 articles · Updated · CNBC · May 21
Spotify rose 6% after telling investors it expects 2030 revenue to grow at a mid-teens compound annual rate and gross margins to reach 35%-40%.
The company framed 1 billion subscribers and $100 billion in revenue as its long-term “north star,” underscoring a push to scale beyond core music streaming.
That pitch comes during a leadership reshuffle: this was Spotify’s first investor day since 2022 and the first under co-CEOs Gustav Söderström and Alex Norström, after Daniel Ek stepped down early this year.
The targets aim to reassure investors after the stock lost about a quarter of its value in 2026 and as Spotify faces AI-driven industry disruption while expanding in podcasts and audiobooks.
Since 2022, Spotify said it has added more than 340 million users and over 110 million subscribers, giving context for the growth runway behind its 2030 goals.
As Spotify bets big on AI and audiobooks, can it finally break free from the low-margin trap of music streaming?
With AI music on the rise, how will Spotify protect the earnings and careers of its human artists?