Spotify Stock Is Down 26%. Should You Buy the Dip, or Run for the Hills?

Spotify stock has declined 26% from its record high despite strong Q3 2026 earnings. The company is investing heavily in AI-powered features to differentiate its platform and convert free users to paying subscribers. While operating costs have surged 25%, management expects expense growth to moderate. At a forward P/S ratio of 4.7, the stock appears reasonably valued, with significant long-term growth potential in emerging markets.