Why Spotify Stock Tanked 32.7% in April
Shares of Spotify (NYSE: SPOT) collapsed by 32.7% in April, according to S&P Global Market Intelligence. The audio streamer reported better-than-expected earnings for the first quarter, but the stock was dragged down by the general sharp decline among consumer internet and technology stocks last month. It is also possible that investors are losing faith in Spotify's continued investments in non-music segments.
On the morning of April 27, after a month-long share price slide, Spotify reported its Q1 financials. Revenue came in at 2.66 billion euros and earnings landed at 0.21 euros per share. Both numbers beat analysts' consensus expectations, but instead of reacting to that with positivity, investors further sold off the stock in the session that followed the report.
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Source Fool.com
