Spotify forecasts profit below estimates on higher taxes, shares sink
Spotify forecast third-quarter profit below Street estimates on Tuesday as higher taxes related to employee salaries outweigh upbeat demand for its premium music-streaming plans.
The company’s shares, which have risen around 57% so far this year, fell nearly 9% in premarket trading.
Investors are closely monitoring the Swedish company’s profitability after price hikes, cost cuts and subscriber gains in recent years helped it achieve its first annual profit in 2024.
