SPOTWhy did profit drop?
Spotify reported an operating loss of $75M — at first glance, that looks bad. But there’s logic behind it:
• Increased spending on marketing and podcast development (long-term investment)
• Higher royalty payments — short-term pressure
• Expansion of features and product offerings — costs now, growth later
What’s good?
• Revenue up 17% YoY — Spotify keeps growing steadily
• Premium subscribers +14% — user base continues to expand
• Streaming cost per user is decreasing
• Podcasts and audio ads growing faster than expected
• Announced $1B share buyback program
Technically:
• Bounce from the bottom of the rising channel — strong support
• Upside potential to $800 (~+23%) if trend holds
Spotify is investing in growth. Yes, it hurts earnings now, but markets care more about direction than past numbers. And right now, the arrow points up.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.