Earnings Preview: What To Expect From Spotify On Wednesday

Spotify Inc. is scheduled to report earnings before Wednesday’s open. The stock hit a record high of $299.67/share in 2020 and is currently trading near $271/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:

Gallery: 2020 30 Under 30: Music

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Gallery: 2020 30 Under 30: Music

31 images

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Earnings Preview:

Spotify is expected to report a loss of ($0.49)/share on $2.10 billion in revenue. Meanwhile, the so-called Whisper number is a loss of ($0.29). The Whisper number is the Street’s unofficial view on earnings.

Company Profile:

Spotify Technology S.A., together with its subsidiaries, provides audio streaming services in the United States, the United Kingdom, Luxembourg, and internationally. It operates through two segments, Premium and Ad-Supported. The company offers unlimited online and offline high-quality streaming access to its catalog of music and podcasts without commercial breaks to its subscribers. It also provides on-demand online access to its catalog of music and unlimited online access to the catalog of podcasts to its subscribers with no subscription fees; and sales, marketing, contract research and development, and customer support services. As of March 31, 2020, the company’s platform included 286 million monthly active users and 130 million premium subscribers in approximately 79 countries and territories. Spotify Technology S.A. was founded in 2006 and is based in Luxembourg, Luxembourg.

Pay Attention To How The Stock Reacts To The News:

From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news.

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