Spotify’s (NYSE:SPOT) stock took a big jump after its latest report, even though its earnings didn’t meet expectations. Investors were happy because the company gave strong guidance for the future, showing it’s focusing on making more money despite recent changes in how it deals with podcasts and raising its prices.
The company reported losing 75 million euros ($80.6 million) in the last quarter, which was less than it expected. But its prediction for the next quarter’s earnings is much better than what experts thought.
Spotify’s CEO, Daniel Ek, talked about how the company is working smarter now, being careful with where it puts its money and shutting down things that don’t help its new goals.
Despite the loss in earnings, the company’s stock went up by 11% when trading started. This shows that investors are hopeful about Spotify’s future and the changes it’s making to become more profitable.
Spotify’s user numbers also did better than expected, with more people using the platform than the company thought. This is a good sign for its future earnings.
The company has been spending a lot of money to get into the podcasting business, which has affected how much money it makes. But Spotify says it’s working on making more profit starting this year.
Spotify has also made deals to let its most popular podcasts be available on other platforms like Apple Podcasts and YouTube. This could bring in more listeners and help the company make more money from ads.
Even though Spotify’s stock hasn’t reached its highest point yet, it’s still doing well compared to last year. Investors seem confident that the changes the company is making will pay off in the long run.
Featured Image: Freepik @ ezphoto
Author Stephanie Bédard-Châteauneuf 
