Spotify’s Record Profit Couldn’t Stop the Stock Slide
Spotify shares dropped 12% in premarket trading Tuesday after the company forecast second-quarter operating income and paying-user growth below analyst estimates. Spotify expects €630 million in Q2 operating income and 299 million Premium subscribers, both missing Wall Street targets. First-quarter operating income hit a record €715 million, boosted by lower payroll taxes tied to share-based compensation. Revenue rose 8% to €4.53 billion.