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Stay growthy: Why Spotify is so keen to show that it is still a "growth story"

Stay growthy: Why Spotify is so keen to show that it is still a "growth story"

Spotify tried to make one thing very clear to its investors this week: that it's still in its "growth" phase.

On Monday Spotify announced plans to move into 85 new markets, mostly in Asia, Africa, the Pacific and the Caribbean, as well as announcing a new premium subscription with "higher quality" audio. According to the Swedish streaming giant, those new markets should open the company up to more than 1 billion new potential customers.

Growth, growth, growth

If you read last week's newsletter you'll have noticed that at a quick glance this chart looks a lot like the Shopify one from Friday. But, despite similar sounding names, SHOP and SPOT are in very different places. For Spotify its growth has slowed down to a healthy, but not outrageous, 16%. That's why the announcements on Monday feel so important for the company.

Reiterating the message, that Spotify is still very much a growth company, is clearly the top priority for Spotify management. If investors begin to see Spotify as a lower growth business, they'll need to see profits to justify owning the shares — which isn't something Spotify has been good at producing in the last decade, reporting a net loss in every single year since 2011.

The big podcasts bet

Last year 55% of Americans reported that they have listened to a podcast, up from 51% the year before. It's no surprise then that Spotify has also doubled down on its big podcasts bet, unveiling a raft of new exclusive podcasts featuring big names such as Barack & Michelle Obama, Bruce Springsteen and Ava DuVernay.

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Starbucks issues apology after viral “Bearista” cup meltdown

Holiday cheer turned into chaos this week for Starbucks after the coffee giant’s new “Bearista” holiday cup sent fans into a frenzy. 

Dropped alongside its 2025 holiday menu, the $30 beanie-wearing glass bear tumbler sparked long lines, sellouts, and even in-store scuffles before Starbucks stepped in with an apology.

“The excitement for our merchandise exceeded even our biggest expectations,” the company said in a statement to People. “Despite shipping more Bearista cups to our coffeehouses than almost any other item this holiday season, the Bearista cup and some other items sold out fast.”

Within hours of launch, frustrated fans flooded Starbucks’ social media pages and even store hotlines. Some customers waited in line before dawn and others said their stores received only a handful of cups. In one Houston location, the craze even turned physical, with police reportedly called to break up a brawl. Meanwhile, the cup is already reselling on sites like eBay, with listings topping $600.

“We understand many customers were excited about the Bearista cup and apologize for the disappointment this may have caused,” Starbucks said. While in-store customers may be upset, investors seem happy about the viral hit, as the stock has risen over 3% on Friday.

If you’re still hoping for a Bearista at market price, that may not be on order: the chain didn’t disclose how many cups were made or whether a restock is planned.

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Target tells workers to smile, wave, and greet shoppers if they come within 10 feet of them

Target just rolled out a new rule for store employees: smile, make eye contact, and greet or wave when a shopper comes within 10 feet — and if they get closer, within four feet, ask whether they need help or how their day is going, according to a new Bloomberg report.

Dubbed the 10-4 program internally, the rule mirrors rival Walmarts own 10-foot policy, formalizing behavior Target had previously only encouraged.

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Monster surges on energy drink buzz, while Celsius sinks on distribution concerns

Shares of Monster Beverage climbed 5% after the bell on Thursday, and held most of those gains into early trading on Friday, following strong Q3 results.

The energy drink giant topped market expectations, with quarterly sales up 17% year over year to $2.2 billion and adjusted net profits growing 41% to $524.5 million — 11% ahead of Wall Street’s estimates. In the report, Monster highlighted its zero-sugar line and new product launches, with a stack of novel flavors already released this year, as bright spots.

During a call with analysts, Chief Executive Hilton Schlosberg said that the global energy drink category “remains healthy with robust growth,” The Wall Street Journal reported, adding that demand for more affordable caffeinated drinks is rising as coffee has become “really expensive.”

Meanwhile, rival beverage business Celsius saw shares fall as much as 23% on its Q3 results yesterday — despite beating expectations, with revenue jumping 173% — largely due to concerns about a change in the company’s distribution channel, as its newly acquired Alani Nu brand joins the PepsiCo distribution network.

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