Spotify Stock Plunges 7.5% on Disappointing User Forecast

On April 29, 2025, Spotify Technology's stock experienced a significant drop of 7.5% in pre-market trading, reflecting investor concerns over the company's second-quarter monthly active user forecast, which fell short of expectations.

Spotify has announced plans to increase the price of its individual subscriptions by 1 euro in Europe and Latin America, with the changes expected to take effect as early as June. This move comes as the company seeks to optimize its revenue streams, although it has decided to maintain current pricing in its largest market, the United States.

In its latest earnings report, Spotify forecasted an operating income of 539 million euros for the second quarter, which was below analyst estimates of 557.5 million euros. This disappointing guidance contributed to the stock's decline, as investors reassessed the company's growth prospects.

Despite the recent setbacks, Spotify's subscriber count continues to grow, with a 12% increase reported for the second quarter. However, the company's forecast for 689 million monthly active users and 273 million premium subscribers for the current quarter fell short of Wall Street expectations, raising concerns about its ability to sustain growth in a competitive market.