Spotify Shares Decline After Lackluster Profit Forecast
Shares of Spotify Technology (NYSE: SPOT) fell on Tuesday following the company’s tepid profit forecast. For the first quarter, Spotify reported a 12% increase in monthly active users (MAUs) to 761 million, while premium subscribers rose 9% to 293 million. Total revenue grew 8% to €4.5 billion ($5.3 billion), driven by subscription price hikes in the U.S.
However, Spotify’s management projected an operating income of €630 million for the second quarter, below Wall Street’s expectation of nearly €680 million. This outlook comes as the company plans to increase spending on marketing and AI-driven features. Co-CEO Gustav Söderström expressed optimism about future growth opportunities despite the current slowdown.
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