Spotify Technology (NYSE: SPOT) stock has closed in the triple digits at the end of 50 of its first 52 months as a public company. Ad-supported companies are stumbling, and a wobbly economy doesn't bode well for Spotify's more lucrative premium service. What if Spotify isn't just fading out slowly like so many musical tracks over the years? Read More...
Reuters
Spotify profit margins squeezed by slow ad growth; stock sinks
(Reuters) -Spotify Technology SA on Tuesday said third-quarter profit margins were squeezed by slow advertising growth, fanning concerns about the weak global economy’s effect on digital advertising. Spotify shares slid 4% in after-hours trading, stung by sector-wide weakness after Google parent Alphabet Inc missed market estimates for quarterly revenue as advertisers cut spending. Spotify, whose stock has fallen 58.5% this year, said third-quarter margins were less than it had expected, blaming “some softness in advertising,” currency fluctuations and retroactive royalty payments to songwriters and music publishers.
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