Spotify's shares experienced a significant surge of around 8% in after-hours trading, reaching $452.35. This increase was a result of the company's fourth-quarter profit forecast, which exceeded analyst expectations.

Despite falling short in terms of third-quarter earnings and revenue, investors reacted positively to the guidance provided by Spotify. The company projected an operating income of 481 million euros, surpassing the average estimate of 432.7 million euros. Additionally, Spotify expects its monthly active users to rise to 665 million, which is higher than the anticipated 659.3 million.

However, the revenue guidance for the fourth quarter fell below estimates, with Spotify forecasting sales of 4.1 billion euros compared to the average analyst expectation of 4.26 billion euros. On a positive note, the company reported a year-over-year increase of 12% in subscribers to its Premium service, totaling 252 million, slightly above estimates. Overall, Spotify's stock has more than doubled in value this year, reflecting strong investor confidence in the company's growth trajectory.