Why Spotify Stock Dropped 9% After Earnings
Heading into earnings this morning, analysts had predicted that Spotify (NYSE: SPOT) would report a $0.66-per-share loss on sales of $2.35 billion. In other words, Spotify missed estimates -- on both the top and bottom lines -- and its stock is down 8.5% (as of 10:45 a.m. EDT) because of it. Despite the missed estimates, Spotify declared its fiscal Q3 a success, saying the business "performed at a high level," with "strong MAU [monthly active user] and subscriber growth, a recovery in global consumption hours, record low churn below 4%, better than expected Gross Margin, and Free Cash Flow of 103 million euros."
