Spotify shares are trading lower as a large plunge in Netflix's price action potentially brought down other companies in the broader streaming and entertainment sector.
Spotify is one of the world's largest music streaming service providers. Like Netflix, the firm monetizes users through a paid subscription model, referred to as its premium service. Spotify also has an ad-supported service.
Netflix reported quarterly earnings of $3.53 per share which beat the analyst consensus estimate of $2.90. Netflix also reported quarterly sales of $7.87 billion which missed the analyst consensus estimate of $7.93 billion by 1%. Global streaming paid net additions were down 200 thousand.
Netflix sees second-quarter revenue of $8.053 billion, below the analyst consensus estimate of $8.21 billion. Netflix also sees EPS of $3.00, below the analyst consensus estimate of EPS of $3.01. Netflix also guided for second-quarter global streaming paid memberships of 219.64 million, which represents a decrease of 2 million from the first quarter.
According to data from Benzinga Pro, Spotify has a 52-week high of $305.60 and a 52-week low of $118.20.
