The Strategist

Spotify shares lose 15% after weak quarterly report

07/26/2023 - 03:29

Spotify's stock dropped by 15% following the release of its second quarter report. The streaming service reported both rising revenue and customer growth, but the company’s net loss increased to €302 million.

wp flare
wp flare
After the Swedish corporation Spotify released its second quarter report, its stock price dropped 15% due to a €302 million net loss, which was higher than analysts anticipated.

Spotify's share price on Nasdaq dropped to $139.16 at the day's low, which is 15% less than it was at the end of the previous trading day.

Statistics from Spotify shows that it now as 220 million subscribers, an increase of 17% from the previous year. The number of monthly active users reaches over 550 million, a 27% increase from the previous year.

Revenue grew to €3.177 billion, slightly less than analysts' expectations of €3.21 billion (up from €2.864 billion in the same time last year). Nevertheless, the corporation reported a €302 million net loss as opposed to a €125 million net loss for the second quarter of 2022, despite the gain in revenue and customers.