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Spotify's 1st report as public company flops on Wall Street

A trading post sports the Spotify logo on the floor of the New York Stock Exchange, Tuesday, April 3, 2018. Spotify, the No. 1 music streaming service which has drawn comparisons to Netflix, is about to find out how it plays on the stock market in an unusual IPO. (AP Photo/Richard Drew)

SAN FRANCISCO (AP) - Spotify's first quarterly report as a public held company struck the wrong note with investors, even though its music-streaming service hit the subscriber growth target set by management just before its stock began trading.

About four million more subscribers began paying for Spotify during the first three months of the year. The gains announced Wednesday gave Spotify 75 million subscribers through March to maintain a large lead over Apple's music-streaming service, which has about 40 million.

Spotify had projected it would have 73 million to 76 million subscribers a week before its stock began trading on the New York Stock Exchange in early April.

The stock hit a new high of $171.23 Wednesday before backtracking slightly and then tumbled 8 percent in extended trading after the results were released.

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