On August 4, Spotify Technology S.A. declined 4.39% in regular trading, trading at $474.825/share, with turnover of $455 million.
The decline was triggered by the company's Q2 earnings report missing expectations across the board, coupled with soft Q3 guidance. Q2 EPS came in at $3.03, missing the analyst consensus of $3.29 by 7.9%, while revenue of $5.554 billion fell short of the $5.600 billion estimate. In euro terms, Q2 EPS was 2.61 euros versus the 2.76 euro expectation.
For Q3, the company guided operating income of 670 million euros, below the market estimate of 677.8 million euros. Monthly active user guidance of 788 million also fell short of expectations, signaling slowing user growth. Management noted that full-year AI and marketing investments will add approximately $200 million in incremental operating expenses. Despite Premium subscribers surpassing 300 million for the first time and gross margins reaching a record 33.4%, both Wells Fargo and UBS had previously cut their price targets to $570 and $690, respectively.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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