What happened: Spotify (SPOT) shares tanked 6% in early trading on Tuesday.
What’s behind the move:The digital music and streaming service gave a weaker-than-expected third-quarter forecast for monthly active users and operating income.
Spotify said it expects monthly active users (MAUs) in the current quarter to reach 788 million versus a consensus estimate of 793.5 million
The company also expects total premium subscribers to be 305 million, falling just shy of the expected 305.3 million.
Spotify forecast third quarter operating income of approximately $771 million, below analysts’ expectations of about $784 million.
(SPOT)
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489.11+2.78(+0.57%)
As of 10:11:01 AM EDT. Market Open.
What else you need to know:Spotify’s Q2 revenue increased 14% year over year to roughly $5.5 billion, narrowly missing the consensus estimate.
Total premium subscribers jumped more than 8% year-over year to 300 million, topping expectations.
Earlier this year, Spotify raised prices for its premium subscription, following prior-year hikes intended to improve its bottom line. The stock is down 15% year-to-date and roughly 37% off its all-time high from last year as investors have reset growth expectations.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at@ines_ferre.
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