Updated 1 min read
What happened: Spotify (SPOT) shares tanked 14% in early trading on Tuesday.
What’s behind the move: The digital music and streaming service missed its second quarter premium subscriber outlook. The company sees total premium subscribers coming in at 299 million versus a consensus estimate of 300.29 million. That weaker forecast overshadowed a first quarter gain in premium-paying customers and a revenue jump of 8.2%.
What else you need to know: Earlier this year, Spotify raised prices for its premium subscription, following hikes in prior years intended to improve its bottom line. The stock is down 25% year to date, and more than 40% off its all-time high from last year as investors have been resetting growth expectations.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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