Why Spotify Stock Dropped Today
Spotify Technology's stock fell on Tuesday after the company issued a tepid profit forecast for the second quarter. The company's monthly active users increased 12% year over year to 761 million in the first quarter.
Spotify Technology's shares dropped on Tuesday following a tepid profit forecast. The company's monthly active users rose 12% to 761 million in the first quarter, while premium subscribers increased 9% to 293 million. Total revenue grew 8% to $5.3 billion, driven by price hikes that improved gross margin by 1.3 percentage points. Operating income jumped 40% to $838 million. However, the company's guidance for the second quarter was below expectations, with operating income expected to be 630 million euros. Spotify is investing in marketing and new AI-powered features, which Co-CEO Gustav Söderström believes will drive future growth.
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