Spotify shares fall after weak Q2 profit forecast

Spotify shares fell in premarket trading after the company issued a weaker-than-expected forecast for the second quarter, signaling slowing growth in key markets.

The streaming giant projected operating income of 630 million euros for the upcoming quarter, falling short of analyst expectations of around 684 million euros. The softer outlook comes despite a strong first quarter, where profits reached a record level, News.Az reports, citing Reuters.

Investor attention remains focused on profitability as Spotify continues to balance price increases and cost-cutting efforts while investing in new artificial intelligence features to boost user engagement.

The company also forecast slower growth in its premium subscriber base, expecting to add about 6 million new paying users—below market expectations. However, overall monthly active users are still projected to grow slightly above forecasts.

Competition remains intense, with rivals such as Apple and Amazon continuing to expand their own music streaming services.

Spotify has been pushing deeper into AI-driven features, including personalized playlist tools and voice-based music discovery, as it looks to strengthen user retention and differentiate its platform.

Despite steady revenue growth, the latest outlook suggests that expansion in major regions like Europe and North America may be losing momentum, raising fresh concerns among investors about the company’s long-term growth trajectory.

News.Az 

By Aysel Mammadzada