Why Spotify Stock Plunged Today
Shares of Spotify (NYSE: SPOT) fell on Wednesday after the audio platform's mounting losses alarmed investors. As of 3:25 p.m. ET today, Spotify's stock price was down more than 11%.
Spotify's monthly active users (MAUs) grew by 20% year over year to 456 million in the third quarter, fueled by strong growth in international markets. That was above management's guidance for MAUs of 450 million and Wall Street's expectations of 448.6 million.
Paying users also increased at a solid pace, albeit slower. Promotions and new household plans helped the streaming company boost its premium subscriber base by 13%, to 195 million. That, too, bested management's and analysts' projections, which had both called for 194 million subscribers.
Source Fool.com
