Spotify (SPOT) shares dropped 10% after missing Q2 earnings and revenue expectations. Revenue was €4.19 billion, below €4.27 billion forecasted. Operating income fell short due to currency movements and costs. Q3 guidance includes €25 million in social charges. MAUs exceeded expectations at 696 million. Premium subscribers grew to 276 million.

Spotify’s stock rally reversed after the company’s earnings report. They raised prices and introduced new audio bundles to increase profitability. Gross margin declined to 31.5% in Q2, with forecasts to slip further in Q3. Analysts warn of slower margin expansion and label deals impacting future results.

Despite challenges, Spotify remains committed to growth and margins. The company’s strategic pricing changes and focus on audio content aim to cater to diverse consumer needs. As they navigate margin pressures, analysts caution on potential slowdowns in expansion.

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Read more at Yahoo Finance: Spotify stock slides after Q2 earnings and revenue miss, snapping back from record highs