Spotify stock was falling after it booked a loss of around $100 million for the second quarter.
Spotify (SPOT) shares dropped 7% in premarket trading Tuesday after the Swedish audio streaming giant reported worse-than-expected second-quarter results and issued a mostly disappointing outlook.
Spotify forecast third-quarter profit below Wall Street estimates on Tuesday as higher taxes related to employee salaries outweigh upbeat demand for its premium music-streaming plans, sending its shares down 5% in premarket trading.
The audio streaming service added more listeners than it had forecast, but reported a net loss for the second quarter.
SPOT's soaring stock and booming user growth are about to face a test as earnings risks and valuation concerns weigh prior to second-quarter 2025 results.
Looking beyond Wall Street's top-and-bottom-line estimate forecasts for Spotify (SPOT), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended June 2025.
Recently, Zacks.com users have been paying close attention to Spotify (SPOT). This makes it worthwhile to examine what the stock has in store.
Spotify (SPOT) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Spotify (SPOT) closed the most recent trading day at $720.91, moving +2.18% from the previous trading session.
SPOT rides a wave of AI innovation and user growth, but high valuation and fierce rivals make it a cautious hold.
A new band, Velvet Sundown, went viral with over a million Spotify streams before it emerged they were entirely AI-generated, including their music, images and backstory, according to the Guardian. This revelation has sparked calls for streaming services to clearly label AI-created music, so listeners know what they're hearing.
Spotify has been "running hot," and the stock now trades near all-time highs, up 770% since late 2022. While gross margins have improved and the company is now profitable on a GAAP basis, we don't think continued, structural margin gains are likely. At the same time, the stock is trading at an "extreme" valuation and looks too expensive given revenue growth.