Spotify soars 13% after announcing AI music deal with UMG, guidance

Key points

• Spotify shares jumped 13% on Thursday after the music streaming platform laid out guidance for 2030 and reached an artificial intelligence deal with Universal Music, as the technology sparks major disruption concerns across the industry.
• The company expects revenue at a compounded annual growth rate in the mid-teens and gross margins between 35% and 40%.
• Spotify referred to plans to reach 1 billion subscribers and $100 billion in revenue as its "north star." "We are still firing on all cylinders," co-CEO Gustav Söderström told CNBC's Julia Boorstin at the company's first investor day since 2022. "We're seeing strong growth in free users and in subscribers." As part of the deal with Universal, Spotify will let users create covers and remixes using the voices of artists and songwriters who opt in.
• Spotify said the tool will launch as a paid add-on for premium users and offer a new revenue stream for...