Why is Spotify stock down?
The audio streamer reported better-than-expected earnings for the first quarter, but the stock was dragged down by the general sharp decline among consumer internet and technology stocks last month. It is also possible that investors are losing faith in Spotify's continued investments in non-music segments.
Is Spotify losing money?
Spotify is losing billions of dollars in valuation over the ensuing Joe Rogan controversy. Reports suggest that the music streaming platform has lost anywhere between $2 and $4 billion dollars after Neil Young pulled his music off the platform.
Did Spotify lose 2 billion?
Spotify’s market capitalization fell about $2.1 billion over a three-day span this week, coming after folk rocker Neil Young yanked his songs from the audio-streaming giant to protest Joe Rogan’s misinformation-spreading podcast. Shares of Spotify fell ...
What happened to Spotify stock?
A few conclusions that can be safely drawn, though, include:
- The controversy has morphed from being about anti-vax propaganda to more entrenched arguments about the value of music.
- Artists make much less than one penny per stream from any of the streaming services.
- The revenues made from consumption of music in the United States is nearing previous highs.
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Why is Spotify stock price dropping?
Executives' forecast also called for higher quarterly operating losses than analysts expected, almost 200 million euros. Ek explained that the guidance for substantial losses was the result of investment in original content and a hiring binge as Spotify seeks to branch out from a focus on music.
How much has Spotify stock dropped?
The company's shares fell as much as 18% in late trading after Spotify reported the subscriber outlook. In an interview with Reuters after the report, Spotify's chief financial officer, Paul Vogel, said this year would not be that much different than last in terms of users and subscribers.
Why did Spotify stock drop April 2022?
At Wednesday's lowest point, Spotify was down 59.1% in 2022, shaving $26.6 billion off the company's market capitalization, and the price is 75.3% below the all-time high of $387.44 reached in Feb. 2021. The remarkable decline came after Spotify posted gains in revenue, net income, monthly active users and subscribers.
Is Spotify a good stock to buy now?
Profitability and an Attractive Valuation for SPOT Stock Analysts, on average, expect Spotify's earnings per share (EPS) to come in at 4 cents this year and $1.11 in 2022. The most optimistic analyst expects the company to generate 2023 EPS of $3.29.
Is Spotify falling?
Spotify stock has lost an astounding 50% of its value over the past year alone, a drop of more than $32 billion in market cap. Once upon a time, Spotify stock was the darling of Wall Street. Now, a confluence of factors is driving SPOT southward and wiping away billions in market cap.
Who has left Spotify 2022?
Nils Lofgren - the guitarist has stated his wish to remove 27-years of music from Spotify. Brené Brown - the bestselling author has suspended recording her podcasts on the streaming platform. India Arie - the signer-songwriter pulled her music and podcast in the aftermath of Young's statement.
Is Spotify going to grow?
Spotify has a lot working in its favor. The music industry is slowly migrating to streaming, and it is poised to grow for years because of it. It is also working on bringing all sorts of audio formats, including podcasts, to its platform, further increasing the value proposition for users.
How profitable is Spotify?
From 2015 to 2021 Spotify's revenues grew at a CAGR of 26.64% while gross profit at a CAGR of 42.60%. What has not improved, however, is the company's profitability: even though Spotify is a world leader in its industry the company is still not profitable.
Who has left Spotify?
Joni Mitchell. Joni Mitchell followed Neil Young in declaring that she, too, would be removing her music from Spotify. ... Nils Lofgren. Guitarist Nils Lofgren of Bruce Springsteen's E Street Band announced that he had also decided to pull over two decades worth of music from Spotify. ... Brené Brown.
Is Spotify a good investment 2021?
In 2020, Spotify made a measly 6 million euros in gross profit from its ad-supported base. This year, it increased its gross profit by 1,850% to 117 million euros....Ad-supported users are growing faster – but there's a catch.User TierFull-Year 2021 RevenueGrowth vs. 2020Ad-Supported1.21 billion euros62%2 more rows•Feb 9, 2022
What is the future of Spotify?
Spotify is producing weak bottom-line growth Its monthly active users (MAUs) rose 27% to 345 million in 2020, then improved 19% year over year to 381 million in the third quarter. For the full year, Spotify expects its revenue to grow 21% to 23% and its MAUs to increase 16% to 18%.
Is Spotify a Buy Sell or Hold?
Spotify Technology has received a consensus rating of Buy. The company's average rating score is 2.50, and is based on 14 buy ratings, 11 hold ratings, and 1 sell rating.
Did Spotify lost 4 billion?
Spotify lost $4 billion in market value this week after rock icon Neil Young called out the company for allowing comedian Joe Rogan to use its service to spread misinformation about the COVID vaccine on his popular podcast.
How profitable is Spotify?
From 2015 to 2021 Spotify's revenues grew at a CAGR of 26.64% while gross profit at a CAGR of 42.60%. What has not improved, however, is the company's profitability: even though Spotify is a world leader in its industry the company is still not profitable.
How many customers has Spotify lost?
In Q1, Spotify netted 2 million Premium subscribers, to reach 182 million (up 15% year over year). That included approximately 1.5 million disconnects due to the company's ceasing operations in Russia.
How much did Spotify pay Joe Rogan?
Spotify paid Joe Rogan at least $200 million to host The Joe Rogan Experience exclusively on its platform, according to the New York Times—double the Wall Street Journal's initially reported figure of $100 million for the controversial comedian who has come under fire recently for his past use of racial slurs and his ...
Should I buy or sell Spotify Technology stock right now?
25 Wall Street analysts have issued "buy," "hold," and "sell" ratings for Spotify Technology in the last year. There are currently 2 sell ratings,...
What is Spotify Technology's stock price forecast for 2022?
25 Wall Street research analysts have issued 1 year price objectives for Spotify Technology's shares. Their forecasts range from $101.00 to $300.00...
How has Spotify Technology's stock performed in 2022?
Spotify Technology's stock was trading at $234.03 at the start of the year. Since then, SPOT stock has decreased by 56.3% and is now trading at $10...
When is Spotify Technology's next earnings date?
Spotify Technology is scheduled to release its next quarterly earnings announcement on Wednesday, July 27th 2022. View our earnings forecast for S...
How were Spotify Technology's earnings last quarter?
Spotify Technology S.A. (NYSE:SPOT) announced its earnings results on Wednesday, April, 27th. The company reported $0.21 earnings per share (EPS) f...
Who are Spotify Technology's key executives?
Spotify Technology's management team includes the following people: Mr. Daniel G. Ek , Founder, CEO & Chairman (Age 39, Pay $104.89k) Mr. Sven M...
What is Daniel Ek's approval rating as Spotify Technology's CEO?
343 employees have rated Spotify Technology CEO Daniel Ek on Glassdoor.com . Daniel Ek has an approval rating of 93% among Spotify Technology's em...
Who are some of Spotify Technology's key competitors?
Some companies that are related to Spotify Technology include Sirius XM (SIRI) , iHeartMedia (IHRT) , Corus Entertainment (CJREF) , Urban One (...
What other stocks do shareholders of Spotify Technology own?
Based on aggregate information from My MarketBeat watchlists, some companies that other Spotify Technology investors own include NVIDIA (NVDA) ,...
What is Podz on Spotify?
What is Jemele Hill's podcast?
Spotify (NYSE: SPOT), the world's largest audio streaming platform , recently announced that the company is acquiring a small New York City-based podcast discovery tool called Podz. What is Podz? Before considering any possible synergies and benefits from the acquisition, it's probably best to understand what Podz actually does.
When will Spotify release its Q2 report?
Jemele Hill expanded her exclusive Spotify podcast pact to form her own podcast network: The Unbothered Network, which aims to elevate the voices and stories of Black women. The name is based on Hill’s Spotify-exclusive podcast “Jemele Hill Is Unbothered,” which the audio-streaming platform has renewed for a third season. Hill, a provocative culture critic, ]
Who is the head of audio for Archewell?
One well-known stock, audio music streamer Spotify (NYSE: SPOT), is set to release its Q2 report before the market opens on July 28. The majority of Spotify's revenue comes from its ad-free music subscription service.
Who plays Bruce Wayne in Batman Unburied?
Archewell Audio, the podcast arm of Prince Harry and Meghan Markle ’s production firm, has tapped award-winning podcast producer Rebecca Sananes as head of audio. Most recently, Sananes for the last two years has been lead producer for New York Magazine’s “Pivot” tech, media and business podcast hosted by Recode cofounder Kara Swisher and NYU professor Scott ]
Is Sweden a Silicon Valley?
and DC, have found their Batman and Alfred for the forthcoming “Batman Unburied” scripted podcast thriller. Leading the cast as Bruce Wayne is Winston Duke, whose credits include “Black Panther,” “Avengers: Infinity War,” “Avengers: Endgame” and “Us.”.
Double-digit growth wasn't enough to please investors
FOCUS-How Sweden became the Silicon Valley of Europe. As Klarna's billionaire founder Sebastian Siemiatkowski prepares to stage one of the biggest-ever European fintech company listings, a feast of capitalism, he credits an unlikely backer for his runaway success: the Swedish welfare state.
What happened
Travis Hoium has been writing for fool.com since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things. Follow @TravisHoium
So what
Shares of streaming music and podcast company Spotify Technology ( NYSE:SPOT) fell as much as 18.9% in early trading on Thursday after reporting fourth-quarter results. Shares were down 15.9% at 11:50 a.m. ET today and were bouncing near a 52-week low.
Now what
Spotify reported a 24% increase in revenue in the quarter to $2.7 billion as total monthly active users jumped 18% to 406 million. The company reported a net loss of $39 million, or $0.21 per share. On an adjusted basis, the loss was $0.24 per share, which easily bettered the $0.48 loss that analysts expected.
The bearish thesis
Investors seem to be disappointed by the rate of growth Spotify is expecting and the fact that management is no longer giving full-year guidance. But looking at the company's trends, I still think this is a solid business.
Our take
Wells Fargo analyst Steven Cahall sees SPOT dropping to a price target of $200, which represents nearly 20% downside for the stock. According to TipRanks, of 16 analysts that cover Spotify, Steven is one out of only a few research professionals who see a decline in share price ahead.
Twitter speaks
In our view, risks are naturally high in an industry that is as nascent as audio streaming. Therefore, the possibility of short-term volatility in SPOT and even sharper drawdowns should not be brushed off.
Get more expert analysis on SPOT
SPOT stock is down a whopping 30% from all-time highs. What do you do?
How much did Spotify pay for JRE?
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How much is Spotify stock worth in 2021?
As an aside, Spotify reportedly paid $100 million for the rights to JRE and also hosts (undoubtedly expensive) podcasts from Michelle Obama as well as Barack Obama and Bruce Springsteen, to name some.
How many paid users does Spotify have in 2021?
Spotify stock (SPOT) was worth $228.68 per share when the market closed today – an increase of 3.79 percent ($8.35) on the day.
When will Spotify stock drop?
Lastly, Spotify, after achieving material subscriber growth during 2020, noted in its Q1 2021 performance analysis that it had added just three million paid users – even after debuting in South Korea (population 52 million) without a free tier and expanding into a multitude of other nations yet.
Is SPOT worth it in 2020?
Predictably, multiple financial professionals and investors are speculating as to the precise source of the Spotify stock downturn, which has caused shares to dip to a level not seen since June of 2020.
What happened
Plus, the figure remained flat from Q4 2020. Expanding upon the idea, SPOT, in spite of turning in noteworthy losses thus far in 2021, is still worth a full $36 or so more than it was on May 21st, 2020.
So what
Shares of Spotify ( SPOT 1.81% ) fell 12% Wednesday after the streaming music and podcast company released its first-quarter earnings report.
NYSE: SPOT
Spotify's revenue climbed 16% year over year to $2.6 billion. Its free cash flow, meanwhile, improved to nearly $50 million, compared to negative $25 million in the year-ago period. The gains were fueled by a 21% rise in premium subscribers, to 158 million.
Now what
Spotify's stock price fell sharply Wednesday. Image source: Getty Images.
Premium Investing Services
Spotify also lowered its full-year forecast for active users to between 402 million and 422 million, down from a prior estimate of 407 million to 427 million. The reduced growth outlook comes despite the company's heavy content investments.
