Spotify plunges 15% on weak profit outlook after Q1 beat
Business
Spotify's stock took a sharp 15% dive to $420.53 after the company shared a less-than-stellar profit forecast for the next quarter.
The announcement sent Spotify's stock lower, especially since Spotify just posted record first-quarter earnings that actually beat expectations.
Spotify user growth, forecasts lower profit
Even though Spotify added more users, monthly active users jumped 12% to 761 million and premium subscribers hit 293 million, the company expects lower profits in the second quarter (€630 million versus €715 million in the previous quarter).
To improve profitability, it has bumped up US subscription prices and is adding more audiobooks, podcasts, and new features.
But with big-tech rivals crowding the space, staying on top won't be easy for Spotify.