Spotify (SPOT) shares plummeted over 11% after disappointing Q2 earnings missing Wall Street estimates. Despite this, the tech industry remains strong with companies like Meta, Microsoft, and eBay reporting robust earnings. SPOT stock is rebounding, up 6% intraday after announcing price hikes in select markets.

Despite the recent decline, Spotify is the leading audio streaming company with a market cap of $128.38 billion. SPOT shares have surged 100.7% in the past year, outperforming the S&P 500. However, concerns about its high valuation persist at 98 times forward earnings.

Q2 revenues for Spotify fell short at €4.19 billion with an unexpected net loss of €86 million. Management’s Q3 revenue forecast of €4.2 billion was below expectations due to forex headwinds. User growth remains strong with 11% increase in monthly users and 12% in paying subscribers.

Spotify announced a $1 billion share buyback program extension, showing faith in its intrinsic value. Analysts rate SPOT stock as a “Moderate Buy” with a mean price target of $738.12, indicating potential 10.7% upside. However, the stock’s valuation sensitivity poses risks with a top target of $900 and a low of $484.

Read more at Yahoo Finance: Spotify Stock Bounces Back from Its Post-Earnings Plunge, But is SPOT Stock a Buy Right Now?