Spotify defied gravity but investors punished it anyway, stock hits all-time low
Spotify (NYSE: SPOT) fought multiple headwinds to deliver subscriber and revenue growth, but that was not enough for investors who pushed the stock down to an all-time low.
Spotify’s monthly active users (MAUs) were up1 9% to 422 million year-over-year in Q1. Paid subscribers grew 15% to 182 million.
This growth came despite the Joe Rogan controversy, exit from the Russian market which cost Spotify 1.5 million subscribers, and overall consumer streaming fatigue that’s hammering Netflix and other streaming services.
Spotify stock ended Wednesday down 12.44% at at ann all time low closing of $96.67. The overall markets faired better on Wednesday with the SP 500 up ,21% and the tech heavy NASDAQ down only .01% for the day.
The stock recovered slightly up 1.2% in after hours trading Wednesday night, but less than the overall markets which appeared poised to open Thursday 2% higher based on pre-market futures.
Bruce Houghton is Founder and Editor of Hypebot and MusicThinkTank and serves as a Senior Advisor to Bandsintown which acquired both publications in 2019. He is the Founder and President of the Skyline Artists Agency and a professor for the Berklee College Of Music.