CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Spotify shares lose nearly 17%

18:08 3 February 2022

Spotify (SPOT.US) is one of the largest music streaming providers with nearly half a billion active users, including nearly 200 million regular subscribers.

The company, amid controversy over a dispute with the host of Joe Rogan's popular US podcast, is losing nearly 17% today after presenting negative forecasts heralding a slowdown in growth. Fueling the declines was a boycott of the aforementioned podcast by many people, which by opinionated could potentially entail negative sentiment and even an exodus of some customers.

Start investing today or test a free demo

Open account Try demo Download mobile app Download mobile app

The company reported that it would end the first quarter of 2022 with 418 million users and 183 million paid subscribers. In both cases, the forecasts proved disappointing to Wall Street analysts. Spotify shares fell nearly 23% in pre-market trading, erasing most of the gains made in the post-market rebound. Some losses have now been erased, while the stock price remains deep under the dash.

The company has conveyed that a strong end to 2021 is largely responsible for the poor performance. The company had its record period then, adding 25 million users and nearly 8 million paid subscribers in Q4 2021. Spotify's business grew during the coronavirus pandemic, thanks to new market trends and people's behaviour towards platforms that offer 'free time fillers'.

The uneven return to business after the pandemic has, as usual, made it very difficult for companies to predict exact growth and maintain such a high rate of growth, which they owed primarily to non-standard circumstances. The situation is somewhat reminiscent of Netflix, which also predicted a slowdown in 2022 blaming it on the pandemic which resulted in an avalanche of sales. We can therefore say that we are dealing with a kind of exhaustion of the market, which needs to 'cleanse itself'. From the outset, however, it could have been assumed that such a powerful rate of growth of companies benefiting from the coronavirus pandemic could not be sustained indefinitely and that spectacular increases could be followed by a correction. Of course, the uncertain situation on the broad market adds fuel to the decline.

Spotify (SPOT.US) opens today with a massive downward gap, the lowest since mid-2020. In addition, this is the zone associated with the upper limit of the 2019 consolidation. Source: xStation 5

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

Back
Xtb logo

Join over 1 Million investors from around the world

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol cc 2 March 2024
adobe_unique_id cc 1 March 2025
test_cookie cc 1 March 2024
SESSID cc 9 September 2022
__hssc cc 1 March 2024
__cf_bm cc 1 March 2024
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid cc 9 September 2022
_gat_UA-22576382-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_ga_CBPL72L2EC cc 1 March 2026
_ga cc 1 March 2026
AnalyticsSyncHistory cc 8 October 2022
af_id cc 31 March 2025
afUserId cc 1 March 2026
af_id cc 1 March 2026
AF_SYNC cc 8 March 2024
__hstc cc 28 August 2024
__hssrc

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID cc 26 March 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 2 March 2024
_uetvid cc 26 March 2025
_fbp cc 30 May 2024
fr cc 7 December 2022
muc_ads cc 7 September 2024
lang
_ttp cc 26 March 2025
_tt_enable_cookie cc 26 March 2025
_ttp cc 26 March 2025
hubspotutk cc 28 August 2024

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description
personalization_id cc 7 September 2024
UserMatchHistory cc 8 October 2022
bcookie cc 8 September 2023
lidc cc 9 September 2022
lang
bscookie cc 8 September 2023
li_gc cc 7 March 2023

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language