Spotify Stock Surges After Record Profit and Strong Guidance

• Spotify Technology reported record profit, gross margin, and free cash flow in Q2, driven by its recent efficiency strategy.
• Despite monthly active user metrics falling short, the stock surged over 10% in premarket trading.
• The company announced price hikes for its premium US subscription plans and committed to multiple rounds of layoffs to boost growth and improve margins.
• Spotify's operating income and net income significantly exceeded expectations, with strong guidance for Q3.
• Wall Street analysts credited the company's gross margin beat and better-than-expected guidance as key catalysts for the positive stock reaction.

Source: Yahoo Finance