Spotify [NYSE: SPOT] stock fell 14.26%, closing at $140.38 on Tuesday after the company’s Q2 report to investors.
This comes as an immediate shock following recent news that, as reported yesterday on our site, Spotify recorded impressive growth in both paid and ad-supported users.
But that was not enough for Wall Street, who focused on the streamer’s slightly lower-than-expected revenue, weak future guidance, and analyst concerns that a recent price hike could slow future growth.
Despite this notable fall, in pre-market trading Wednesday Spotify stock was up 2.32%. This suggests that the downward spiral may be over for now, though if the projected slow future growth does come as a result of the price hike, the streaming giant may be in for more uneasy days.