Spotify shares jumped nearly 20% on February 10 after the company released strong fourth-quarter results and issued an upbeat outlook for the current period. The company beat market expectations, and a technical breakout above a key resistance level strengthened short-term bullish momentum.

Revenue and margins exceeded forecasts, with gross margin reaching a record 33.1%. Spotify added 38 million new subscribers during the quarter, marking the largest quarterly increase in its history. Subscriber growth and successful price increases confirmed the resilience of its business model.

Despite the recent rally, Spotify shares remain below their year-to-date highs, which analysts believe leaves room for further recovery. The stock trades at a lower valuation multiple compared to Netflix, while Wall Street maintains a “Strong Buy” consensus rating with over 40% upside potential from current levels.

Analysts note that improving operating income and audience growth signal the company’s transition into a more sustainable profitability phase. Investors view the earnings report as confirmation that the strategy focused on podcasts and audiobooks is beginning to deliver tangible results.