Spotify (SPOT) Tumbles 11.55% as Earnings Disappoint

We recently published Massive Drop Alert: These 10 Stocks Take a Beating. Spotify Technology S.A. (NYSE:SPOT) is one of the worst-performing stocks on Tuesday.

Spotify Technology snapped a three-day winning streak on Tuesday, shedding 11.55 percent to close at $620.01 apiece as investors sold off positions following a disappointing earnings performance in the first half of the year.

In a statement, Spotify Technology S.A. (NYSE:SPOT) said it swung to an attributable net loss of 86 million euros from a net income of 274 million euros in the same period last year, despite revenues increasing by 10 percent to 4.19 billion euros from 3.8 billion euros year-on-year.

Heading into the third quarter, Spotify Technology S.A. (NYSE:SPOT) expects revenues to end at 4.2 billion euros, assuming a 490-basis point headwind to year-on-year growth due to foreign exchange movements.

However, it expects total premium subscribers to increase by 5 million to end at 281 million.

“People come to Spotify and they stay on Spotify. By constantly evolving, we create more and more value for the almost 700 million people using our platform,” said Spotify Technology S.A. (NYSE:SPOT) founder and CEO Daniel Ek. “This value not only benefits users but it’s attracting more people to streaming and as a result, it’s also boosted the industries of music, podcasts, and audiobooks.”

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