Spotify Analysts Slash Their Forecasts After Q1 Earnings

Core Insights - Spotify Technology reported disappointing first-quarter 2025 financial results, with earnings of $1.13 per share, missing the analyst consensus estimate of $2.33 [1] - Quarterly sales reached $4.41 billion (4.19 billion euros), reflecting a 15% year-on-year increase and surpassing the analyst consensus estimate of $4.20 billion [1] - The company achieved monthly average user (MAU) net additions of 3 million quarter-over-quarter, bringing the total to 678 million, which aligns with guidance [1] Financial Outlook - For the fiscal second quarter of 2025, Spotify expects revenue of $4.52 billion (4.3 billion euros), exceeding the analyst consensus estimate of $4.39 billion, and anticipates total MAUs of 689 million [2] - Following the earnings announcement, Spotify shares fell by 3.5%, closing at $576.94 [2] Analyst Ratings - Rosenblatt analyst Barton Crockett maintained a Neutral rating on Spotify and lowered the price target from $658 to $657 [7] - Evercore ISI Group analyst Mark Mahaney maintained an Outperform rating while reducing the price target from $700 to $650 [7]