Why Spotify Stock Dropped 13.3% Today
Shares of music-streaming giant Spotify (NYSE: SPOT) fell as much as 13.9% in trading on Tuesday after the company reported second-quarter 2023 earnings. Shares are hitting their lows at 12:00 p.m. ET and are continuing to decline.
Revenue was up 11% in the quarter to 3.18 billion euros, but the company reported a 247 million euro operating loss and only 9 million euros of free cash flow. Investors were expecting improving costs as Spotify cut expenses earlier this year, but that hasn't materialized yet.
On the positive side, Spotify increased monthly active users by 7% sequentially to 551 million, and premium subscribers were up 17% to 220 million. That's tremendous growth ahead of the price increases announced yesterday but haven't helped the stock.
Source Fool.com
