Despite reporting third quarter results that were largely in line with or even ahead of expectations, Spotify’s share price dropped by more than 6 percent in the aftermath of its earnings release on Thursday. The drop was largely driven by fears of slowing user growth and the company’s plans to “accelerate the pace of investment in R&D and Content in 2019”, which would likely reduce operating margins for the “foreseeable future”.
Source: Infographic: Spotify’s Uphill Battle Against Royalty Costs