Spotify (NYSE:SPOT) stock was down 2.64% in early afternoon trading on July 31. The media services company, which is known for its audio streaming platform, added eight million subscribers in the three months to the end of June.
As at June 30, 2019 there were 108 million people globally paying a monthly fee to use the platform. The company had projected between 107 million and 110 million, making it a narrow miss.
The company blamed a monthly student promotional programme that failed to materialize for the setback. Spotify has wiped the floor with the competition in the music streaming space. Its next largest competitor, Apple, boasted 60 million global music subscribers at the end of June. Amazon had obtained roughly 32 million subscribers at the end of April.
A disappointing subscriber add aside, Spotify is still outperforming the competition. Quarterly subscribers have climbed 31% year-over-year, which is more than double the rate of other top streamers. Besides that, Spotify saw total monthly users, which includes those who do not pay, increase to 232 million.
The company posted an operating loss of $3 million on $1.67 billion of revenue. These increases beat expectations.
There is still a lot to like about Spotify going forward, and it remains the dominant player in the audio streaming space. It has spent a good portion of June and July near technically overbought territory, so this could be a good opportunity to add on the dip.
Tech Insider
