SPOT Stock Goes Down Even while it beat subscriber estimates

July 29, 2025: Spotify Technology (SPOT) had a mixed second quarter. It had more premium subscribers and monthly active users (MAUs) than analysts expected, but it also made a loss and fell short on revenue and its sales projection. As a result, SPOT stock went down after the news.

In the June quarter, the streaming music behemoth attracted 8 million premium customers, which was more than analysts had expected (5 million). This takes the total number of members around the world to 276 million. Spotify also said it had 696 million MAUs in the second quarter, which was more than Wall Street’s goal of 689 million. Spotify has a subscription service that is free of ads and one that is sponsored by ads.

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The Stockholm-based corporation lost 48 cents per share in the second quarter, even though its user base grew quickly. Its sales was $4.75 billion. The FactSet analyst consensus had projected earnings of $2.29 per share on $5 billion in sales, so this was a miss. Last year, during the same time period, Spotify said it made $1.44 per share on $4.13 billion in sales.

Spotify said that its problems making money in the second quarter were due to higher-than-expected operating costs and “social charges,” which are payroll taxes that certain nations apply on employee salaries and perks.

Spotify has predicted that its revenue for the upcoming quarter will be $4.86 billion, which is less than the average estimate of $5.25 billion. Last year, they made $4.22 billion in sales. By the end of the September quarter, the business hopes to have 281 million premium customers, an increase of 5 million. It also wants to have 710 million MAUs, an increase of 14 million.

Spotify’s stock price dropped over 7% to 653 in premarket trade on Tuesday. IBD MarketSurge charts show that the stock recently broke out of a double-bottom base at a buy price of 621.20 on April 25. Even though it dropped for two days, it quickly rose to an all-time high of 785 on June 27 before falling below its 50-day moving average line. Spotify is still on the IBD Tech Leaders list.