Spotify’s shares surged at the New York Stock Exchange on Tuesday on the heels of investor delight at the music streaming service’s latest quarterly results.
Spotify announced that the number of people streaming music and podcasts from their platform each month had increased by 14%, year on year, to 626 million. As a result, shares closed 12% higher than the previous trading day.
Company figures revealed a record profit of €266 million, while turnover grew by a fifth to reach €3.8 billion. The growth in profit was attributed in part to cost-cutting measures implemented after a major restructuring last year, coupled with reduced spending on marketing activities.
All eyes were also on the results from electric vehicle manufacturer Tesla (down by 2%) and Alphabet, the parent company of Google (up by 0.1%), which were due to be released after Wall Street’s closure.
In anticipation, share markets ended the day with minor losses. The Dow Jones Index ended 0.1% lower at 40,358.09 points, the S&P 500 was down by 0.2% to 5,555.73 points, and tech-focussed Nasdaq slipped 0.1% to 17,997.35.
