Opening back at the start of April at $169.90, a decent whack higher than the IPO price of $132, Spotify, the music subscription service ended up closing its first day of trading at $149.01, roughly in the middle of those 2 poles.
The months that followed saw Spotify shares accrue new fans, twice crossing $196, first at the end of July and then one month later at the end of August.
But since then the shine has come off the new stock, with the company dragged lower as part of the wider tech sell-off. Spotify Technology SA now sits at a current trading price of $139.14.
The firm’s latest update – the second of its tradeable tenure – came at the end of July. Between Q1 and Q2, Spotify added a better than forecast 8 million paid subscribers, taking the total number to 83 million, a 40% increase year-on-year.
Overall monthly active users, meanwhile, was up 30% y/y to 180 million.
As for revenue, that rose 26% to €1.273 billion, though the company did state that the implementation of a new data policy slowed growth. It went on to claim that it ‘course corrected’ early in Q3, and has subsequently seen a ‘recovery in the business’.
What next for Spotify shares?
In terms of the outlook for Thursday’s Q3 figures, Spotify is expecting 85 million to 88 million premium subscribers, a 36-43% rise year-on-year, with total revenue forecast to come in between €1.2 billion and €1.4 billion, a 17-36% increase.
The company also estimated an operating loss of €10-90 million.
Spotify shares have a consensus rating of ‘Buy’ alongside an average target price of $206.58.
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