From Yahoo Finance: 2025-04-29 08:27:00

Spotify shares dropped 8% after reporting lower user and financial guidance. Q2 MAUs expected to be 689M, below estimates. Q1 saw 10% increase in MAUs to 678M. Premium subscribers rose 12% to 268M. CEO remains confident in long-term outlook despite short-term noise.

Wall Street sees Spotify as a defensive play amid macro uncertainty. Stock surged to all-time highs in Feb but has since fallen. Company shifted focus from exclusive podcasts, scaled back investments. Paid over $100M to podcast creators in Q1. Aiming for higher margins and profitability.

Spotify raised prices twice in less than a year and introduced new audio bundles. Q1 margins at 31.6%, slightly ahead of estimates. Analysts warn of slowing margin expansion and impact of music label deals. Advertising revenue to be closely watched amid weak macro environment.

Company’s massive share surge follows business overhaul and shift in podcast strategy. Cut costs and narrowed content focus. Paid over $100M to podcast creators in Q1. Aiming for higher margins and profitability. Long-term outlook remains positive with potential price increases and new features.

Read more: Spotify stock falls on disappointing Q2 user guidance