Spotify Technology SA (NYSE:SPOT) stock is down 9.4% to trade at $635.37 at last check, after the music streaming platform announced a surprise second-quarter loss as well as a revenue miss. The company also issued a disappointing revenue and operating income outlook for the third quarter.
The equity is looking to snap a three-day win streak with its worst single-day percentage loss since July 2023, as it extends a pullback from its June 27, record high of $785. Though they are now trading at their lowest level since mid-May and breaking below the 60-day moving average, shares still carry a 43.9% year-to-date lead.
Of the 32 analysts in coverage, 22 still carry a "buy" or better rating, leaving plenty room for downgrades. Plus, the 12-month consensus target price of $753.99 is a 17.6% premium to current levels, indicating the stock is ripe for price-target cuts.
Drilling down to today's options activity, 13,000 calls and 13,000 puts have already crossed the tape, which is 8 times the volume typically seen at this point. The most active contract is the September 610 put, followed by the 700 call in the same series, with positions currently being opened at both.
