Shares of Spotify Technology SA (NYSE:SPOT) are down 13.8% to trade at $427.38, despite the music streaming platform's better-than-expected first quarter earnings of $4.04 per share. Revenue of $5.3 billion came in roughly in line with estimates. The company also announced record premium subscribers, though slower subscriber growth is weighing on the stock, along with a weak profit outlook.
This is pacing to be SPOT's worst single-session decline since February 2022. Since the start of the year, Spotify stock is down 26.5%. This month's rally attempt was cut short at $540, an area that coincides with the 120-day moving average.
Straight out of the gate, SPOT has seen 7,270 calls and 10,000 puts exchanged, which is 14 times the amount typically seen at this point. The June 340 put is the most popular, with new positions being opened there.
Analysts have yet to chime in with any adjustments after the earnings event, with the majority currently leaning bullish. Of the 42 brokerages in coverage, 35 carry a "buy" or better rating, with seven a hold. Plus, the 12-month consensus price target of $642.79 is a 50.3% premium to current levels.
