Spotify stock sank Tuesday after mixed Q3 Report
Spotify shares fell as much as 7% in after-hours trading Tuesday after reporting Q3 earnings that narrowly beat analyst expectations.
Some of the drag came after Spotify CEO Daniel Ek said on an earnings call that Spotify would not immediately be raising subscription prices as rival Apple Music had announced on Monday.
Spotify stock has already fallen 58.5% this year, and its executives blamed yesterday’s mixed report on “some softness in advertising,” currency fluctuations, and higher-than-expected retroactive royalty payments to songwriters and music publishers.
“This is an early indicator of the concerns businesses are having about the economy,” Ek told Reuters. “We’re not concerned long term, but it’s definitely impacting us in short term, and it contributed to the gross margin hit that we had this quarter, too.”‘
MORE:
• Spotify adds 8M paid subscribers as revenue tops $3B in Q3 2022
• Spotify will NOT match Apple Music’s subscription rate hike, for now
• Apple Music ups subscription price to $10.99
Bruce Houghton is Founder and Editor of Hypebot and MusicThinkTank and a Senior Advisor to Bandsintown which acquired both publications in 2019. He is also President of the Skyline Artists Agency and a professor for the Berklee College Of Music.
