Spotify (SPOT) shares fell as much as 10% in early premarket trading Tuesday after the audio streamer missed second quarter earnings and revenue expectations.
The results follow a remarkable 120% rally over the past year, as the stock rebounded from 2022 lows on the back of price hikes, cost cuts, and investor enthusiasm for AI and advertising.
Spotify hit a record high of $738.45 earlier this month, but shares slid to around $635 immediately following the results.
Spotify reported second quarter revenue of €4.19 billion ($4.86 billion), missing analyst expectations of €4.27 billion, though up from €3.81 billion in the same period last year.
The company posted an adjusted loss of €0.42 ($0.49) per share, sharply missing forecasts for a profit of €1.97 and down from earnings of €1.33 in Q2 2024.
“Outsized currency movements during the quarter impacted reported revenue by…
