Key Analyst Lowers Spotify Target Price As Shares Sink

The world’s most prominent music streaming platform’s second quarter financial results are out, and there’s a bit of good news for Spotify. 

It reported what Pivotal Research Group Principal and Internet/Media/Communications Analyst Jeffrey Wlodarczak calls “materially higher than expected” Q2 advertising-supported/premium net new Monthly Active Users (MAU) growth.

But, this was offset by “materially lower than forecast” Q2 Average Revenue Per User (ARPU) in the quarter. Furthermore, Spotify projects lower than forecast net new Q3 MAU and revenue growth.

As such, Pivotal lowered its price target for SPOT, which trades on the NYSE. For investors, that’s bleak news, as it is even lower than where Spotify shares landed on Tuesday after a dismal trading session and subsequent Wednesday bounce-back.