Spotify Shares Plummet 15% After Lower-than-Expected Q2 Forecast
Spotify shares plunge 15% after forecasting second-quarter profit below estimates
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Spotify Technology, the Swedish audio-streaming giant, saw its shares drop 15.20% to $420.53 after forecasting second-quarter earnings and premium subscribers below analyst estimates. Despite strong first-quarter performance, the company's outlook raised concerns among investors amid increasing competition and evolving market dynamics.
- 01Spotify's shares fell 15.20% to $420.53 following a disappointing Q2 forecast.
- 02The company reported a record operating income of €715 million in Q1 but expects €630 million in Q2.
- 03Monthly active users grew to 761 million, surpassing guidance, but premium subscriber growth fell short of expectations.
- 04Spotify's revenue for Q1 was €4.5 billion, with a forecast of €4.8 billion for Q2.
- 05The stock has declined 46.5% from its peak in June 2025, raising concerns about its competitive position.
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Shares of Spotify Technology, the Swedish audio-streaming leader, plunged 15.20% to $420.53 on April 28, 2023, after the company projected second-quarter earnings and premium subscriber numbers below analyst expectations. Despite a strong first quarter, where Spotify reported an operating income of €715 million, it anticipates a decline to €630 million for the current quarter. Monthly active users increased to 761 million, exceeding prior guidance, while premium subscribers rose to 293 million, aligning with expectations. However, the forecast for 299 million premium subscribers in Q2 fell short of the 300 million anticipated by analysts. Spotify's revenue for the first quarter was €4.5 billion, and it expects €4.8 billion in the second quarter. The company continues to face challenges from competitors like YouTube and Amazon, and its stock has dropped 46.5% since its peak in June 2025. Spotify is also expanding its offerings, including fitness content and enhanced AI features, to engage users more effectively.
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The decline in Spotify's stock may affect investor confidence and could lead to tighter budgets for future expansions and content investments.
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