Spotify Stock (NYSE:SPOT)
The price of Spotify (NYSE:SPOT) shares increased by more than 5%. The music-streaming behemoth published first-quarter figures that blasted beyond projections for new members and total monthly listeners on Tuesday. These results were released at the same time. As a result, Spotify surged.
Spotify said before the market opened on Tuesday that it had recruited 5 million premium customers in March. This figure is more than twice the 2.23 million premium subscribers anticipated by Wall Street analysts. After the quarter, the firm had 210 million total paying members around the globe.
In addition, Spotify said it concluded the March quarter with 515 million monthly active users, more than the 502 million monthly active users that Wall Street analysts had anticipated.
Spotify (NYSE:SPOT) also shared that it anticipates adding 7 million premium customers during the second quarter of its fiscal year, bringing the total number of users to 530 million by the end of June.
Doug Anmuth, an analyst at J.P. Morgan, said that he was “encouraged” by the robust monthly average user numbers and subscription growth of Spotify, as well as by the fact that the company’s projection “came in better than expected.” An overweight rating has been assigned to Spotify stock by Anmuth.
The increase in subscribers and positive outlook provided by Spotify (NYSE:SPOT) were sufficient to allay most of the worries over the company’s profitability and sales performance for the first quarter. Wall Street analysts had predicted that Spotify (SPOT) would lose 95 cents per share on sales of $3.4 billion. Still, the company said it lost the equivalent of $1.24 per share on revenue of $3.26 billion.
The corporation said that a drop in advertising income contributed to a failure to meet expectations about sales. Spotify, headquartered in Sweden and declaring its quarterly profits in euros, is a music streaming service.
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Author Shariq Khan 
