Spotify shares show mixed performance as CEO Daniel Ek prepares to exit

The year-to-date rise of approximately 27% reflects strong overall gains. However, shares are down roughly 25% from late June, when SPOT approached $800. Analysts have offered divergent outlooks: Goldman Sachs downgraded the stock, while J.P. Morgan and Bank of America Securities projected targets of $805 and $900 respectively.

Much of Spotify’s near-term performance will hinge on the leadership of incoming co-CEOs Gustav Söderström and Alex Norström. As the company’s long-time helm has been solely under Ek, the market appears to be factoring in uncertainties related to the leadership transition.

Advertising revenue remains another key concern. Q3 2025 revenue from ads fell 6% year-on-year to €446 million ($523 million) despite an 11% increase in ad-supported monthly active users, reaching 446 million. This figure is slightly below the revenue recorded in Q3 2023, despite the company adding new music, podcasts, video content, AI marketing tools, and a dedicated ad exchange over the intervening period. Analysts note that the business’s ability to boost advertising income will be crucial, particularly as subscriber growth slows in established markets and free-tier restrictions were eased in September.

Investors and industry observers are also monitoring Spotify’s growing use of AI-generated music. Platforms such as Spotify are increasingly hosting AI-created tracks, generating substantial streams and royalty payments. The expanding presence of machine-made content raises questions about listener engagement and advertiser sentiment, which could affect revenue in 2026.

With a year of strong gains tempered by recent declines, mixed analyst forecasts, and ongoing changes in leadership and content strategy, Spotify faces both opportunities and uncertainties as it enters the new year.