Deprecated: http_build_query(): Passing null to parameter #2 ($numeric_prefix) of type string is deprecated in /home/o6y9pz8rqrwg/public_html/ethical-advisor.com/wp-content/plugins/social-share-with-floating-bar/social-share-with-floating-bar.php on line 507

Deprecated: http_build_query(): Passing null to parameter #2 ($numeric_prefix) of type string is deprecated in /home/o6y9pz8rqrwg/public_html/ethical-advisor.com/wp-content/plugins/social-share-with-floating-bar/social-share-with-floating-bar.php on line 522

Deprecated: http_build_query(): Passing null to parameter #2 ($numeric_prefix) of type string is deprecated in /home/o6y9pz8rqrwg/public_html/ethical-advisor.com/wp-content/plugins/social-share-with-floating-bar/social-share-with-floating-bar.php on line 553

Deprecated: http_build_query(): Passing null to parameter #2 ($numeric_prefix) of type string is deprecated in /home/o6y9pz8rqrwg/public_html/ethical-advisor.com/wp-content/plugins/social-share-with-floating-bar/social-share-with-floating-bar.php on line 571

Deprecated: http_build_query(): Passing null to parameter #2 ($numeric_prefix) of type string is deprecated in /home/o6y9pz8rqrwg/public_html/ethical-advisor.com/wp-content/plugins/social-share-with-floating-bar/social-share-with-floating-bar.php on line 590

Deprecated: http_build_query(): Passing null to parameter #2 ($numeric_prefix) of type string is deprecated in /home/o6y9pz8rqrwg/public_html/ethical-advisor.com/wp-content/plugins/social-share-with-floating-bar/social-share-with-floating-bar.php on line 553

Deprecated: http_build_query(): Passing null to parameter #2 ($numeric_prefix) of type string is deprecated in /home/o6y9pz8rqrwg/public_html/ethical-advisor.com/wp-content/plugins/social-share-with-floating-bar/social-share-with-floating-bar.php on line 590

Music streaming and podcast service Spotify Technology (SPOT) late Wednesday matched expectations for new subscribers in the December quarter. But its March-quarter guidance missed views. Spotify stock tumbled in extended trading.




X



Spotify added 8 million new premium subscribers in the fourth quarter, meeting Wall Street’s consensus estimate. It ended 2021 with 180 million paying subscribers worldwide.

For the current quarter, Spotify expects to add 3 million premium subscribers. However, analysts were looking for 4 million new subscribers in the first quarter, according to FactSet.

Spotify also forecast having 418 million monthly active users in the March quarter, in line with estimates. Spotify offers an ad-supported service in addition to its commercial-free subscription service.

In the December quarter, Spotify tallied 406 million monthly active users, topping Wall Street’s target of 405 million.

Spotify Stock Tanks Late

In after-hours trading on the stock market today, Spotify stock plummeted 9.8%, near 173.15. During the regular session Wednesday, Spotify stock dropped 5.8% to close at 191.92.

Spotify stock has been on a downward slide since notching a record high of 387.44 in February 2021.

The Stockholm-based company lost the equivalent of 24 cents a share on sales of $3.08 billion in the fourth quarter. Analysts expected Spotify to lose 58 cents a share on sales of $2.98 billion, according to FactSet. Spotify reports financial results in euros. In the year-earlier period, Spotify lost 79 cents a share on sales of $2.6 billion.

In the fourth quarter, ad-supported services accounted for 15% of Spotify’s total revenue.

Musicians Protest Podcaster Joe Rogan

Spotify has been mired in controversy lately over its popular podcaster Joe Rogan. Music artists Neil Young, Joni Mitchell and others have pulled their music off the service in protest over what they describe as disinformation about Covid vaccines and the pandemic being spread by Rogan’s podcasts. Rogan pledged to offer more balance on his show, “The Joe Rogan Experience,” following the backlash.

Spotify responded to the concerns by announcing a plan to add a content advisory to any discussion of Covid on its platform.

Spotify is the world’s most popular music subscription streaming service, with 31% market share as of second quarter 2021, according to Midia Research. Apple‘s (AAPL) Apple Music was second with 15% market share, followed by Amazon.com‘s (AMZN) Amazon Music with 13%.

Early Wednesday, LightShed Partners initiated coverage of Spotify stock with a buy rating and price target of 260. LightShed analysts said they are bullish on Spotify’s prospects in advertising-supported streaming audio.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

YOU MAY ALSO LIKE:

AMD Stock Soars After Chipmaker Scorches Fourth-Quarter Targets

Is Apple Stock A Buy After iPhone Maker’s Earnings Report?

Learn How To Time The Market With IBD’s ETF Market Strategy

Find Winning Stocks With MarketSmith Pattern Recognition & Custom Screens

See Stocks On The List Of Leaders Near A Buy Point

This post was originally published on this site

Leave a Reply

Your email address will not be published.