On August 4, Spotify Technology S.A. reported Q2 earnings that missed expectations across all key metrics. Q2 EPS came in at $3.03, falling short of the analyst consensus estimate of $3.29 by 7.9%. Revenue totaled $5.554 billion versus the $5.600 billion expected. Additionally, the company guided Q3 monthly active users at 788 million, below market expectations, signaling mounting user growth deceleration pressures.

Spotify fell over 5% in pre-market trading.

Ahead of the earnings release, multiple investment banks had already trimmed their outlooks. UBS lowered its price target to $690 from $735 while maintaining a Buy rating, and Wells Fargo cut its target to $570 from $600, also maintaining an Overweight rating. Despite the maintained bullish ratings, the combination of a full earnings miss and soft forward guidance weighed on investor sentiment in pre-market activity.

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