Spotify stock fell 12.3% to $256.84 on Wednesday April 28th after the streaming service lowered its forecasted listener count for the end of 2021. This is not Spotify’s first dramatic change in 2021. Spotify’s share value started 2021 at $317.42 and rose to $387.44 on Feb 19th. Then on March 30th, it tumbled to $249.00 — a 35.7% fall in 39 days.
Spotify lowered its full-year forecast for active users to 402 million and 422 million, down from a prior estimate of 407 million to 427 million. In return, the stock of the company fell 12.3%. Although that number dropped, Spotify’s 2021 prediction for subscribers still stands at 172 million to 184 million. This suggests the company expects the dip to come back. Subscribers make up 90% of Spotify’s income.
That isn’t the only positive for Spotify either. Spotify reportedly paid more than $100 million to lure popular podcast host Joe Rogan into signing an exclusive deal back in May. Traders have been excited by information on podcast acquisitions and offers for unique content material exclusively for Spotify.
If Spotify sees the increase in subscribers in 2021 on top of its exclusive content there is no doubt it will see an increase in stock values.
