Spotify's stock fell 9% in premarket trading on Monday after the company's first-quarter earnings report failed to satisfy investors, despite beating expectations.
The decline came as the company issued weaker-than-anticipated guidance for the current quarter, which overshadowed the positive revenue performance.
The New York-listed stock initially dropped as much as 12% following the earnings release before partially recovering.
The New York-listed stock initially dropped as much as 12% following the earnings release before partially recovering.
First-quarter revenue rose 8% year-over-year to 4.5 billion euros ($5.3 billion), according to the report.
However, the muted outlook for the coming period led to a sharp sell-off.
The move highlights the sensitivity of to forward-looking signals, particularly in the tech sector.