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SPOT
CNBC
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Spotify tops third-quarter estimates on strong user growth, issues mixed guidance

1. Spotify reported Q3 earnings beat expectations but issued weak Q4 guidance. 2. Premium subscribers rose to 281 million, just below expectations. 3. Ad-supported revenue dropped 6% year-over-year, missing analyst forecasts. 4. Spotify's CEO will transition to executive chairman next January. 5. Fourth-quarter revenue expected at 4.5 billion euros, lower than estimates.

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FAQ

Why Bearish?

Weak fourth-quarter guidance and falling ad revenue could dampen investor confidence, similar to past declines.

How important is it?

The combination of weak guidance and falling ad revenue presents significant risks for SPOT's future performance.

Why Short Term?

Immediate concerns over revenue guidance may affect SPOT's stock price in the upcoming quarter.

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