Should You Buy Spotify Stock After Its Post-Earnings Drop?
After Spotify (NYSE: SPOT) reported its second-quarter results on July 25, the market didn't like what it saw. Following the reveal of its earnings before market open, the stock ended the day down 14%. That's quite the tumble, but it's also not representative of the whole picture.
Before the report, Spotify's stock was up 107% in 2023. With that complete picture in mind, was the sell-off warranted? Or is this a short-term reaction that long-term investors can take advantage of? Let's find out.
Spotify is the leading streaming service for music and podcasts worldwide. It boasts more than 550 million monthly active users, a figure that rose an astounding 27% year over year and 7% quarter over quarter. With an estimated global population of 8 billion people, that means one out of every 15 people uses the platform.
Source Fool.com
