Why Spotify Shares Are Falling Today

Spotify Technology SA SPOT is trading lower Thursday morning after the company reported fourth-quarter financial results and issued guidance.

Spotify reported quarterly revenue of 2.689 billion euros ($3.03 billion), representing an increase of 24% year-over-year.

The company said monthly active users totaled 406 million, up 18% year-over-year.

Spotify said it expects first-quarter revenue of 2.6 billion, which is below the current quarter's revenue and could be weighing on the stock. 

Spotify also guided for 418 monthly active users in the first quarter and 183 million total premium subscribers. 

Gross margins are expected to be 25% and Spotify said it anticipates a loss of 67 million in the first quarter. 

"Additionally, we plan to host an investor day later in 2022 to offer an update on the strength of our platform and our advancement towards our long-term operating goals," Spotify said. 

• Barclays analyst Ross Sandler maintained Spotify with an Overweight rating and lowered the price target from $310 to $280.
• Rosenblatt analyst Mark Zgutowicz maintained Spotify with a Buy rating and lowered the price target from $350 to $220.

See Also: 21 Stocks Moving in Thursday's Pre-Market Session

Spotify is one of the world's largest music streaming service providers.

SPOT Price Action: Spotify has traded as low as $164.41 and as high as $387.44 over a 52-week period.

The stock was down 11.3% at $170.14 at time of publication.

Photo: deepanker70 from Pixabay.