Spotify Reports Mixed Q1 Results, Stock Falls 8%

Spotify reported mixed first-quarter results, with subscriber growth exceeding expectations but earnings and revenue falling short of analyst estimates, causing shares to drop over 8%. The company added 5 million premium subscribers to reach 268 million, but missed slightly on monthly active user targets and provided second-quarter guidance that disappointed investors. Despite these short-term setbacks, CEO Daniel Ek emphasized strong engagement, high retention, and confidence in Spotify’s long-term direction. Spotify’s stock remains significantly up year-over-year, reflecting optimism tied to past profitability milestones, cost-cutting measures, and expansion in areas like audiobooks. Analysts are generally positive about Spotify’s growth prospects, though opinions vary on valuation and risks due to market volatility. Spotify continues to invest in content, especially podcasts, while leveraging AI features to drive future growth.