Spotify (NYSE:SPOT) stock is on the rise Wednesday as investors react to a strong earnings report for the second quarter of 2022.
In that report, Spotify notes that monthly active users increased 19% year over year to 433 million. Of that, premium subscribers increased 14% to 188 million and ad-supported users increased by 22% to 256 million.
It’s worth pointing out that this increase in monthly active users is above Spotify’s own guidance. It was expecting a total of 428 monthly active users and 187 million of them to be premium subscribers for the quarter.
That increase in users led to revenue of 2.86 billion euros. This is better than the 2.83 billion euros that Wall Street was looking for in the period. It’s also a 23% increase YOY from 2.33 billion euros.
However, there is one negative worth mentioning in the earnings report. Spotify’s earnings per share came in at -85 euro cents. That’s worse than the -63 euro cents per share that analysts were expecting for the period. It’s also wider than the -19 euro cents per share reported during the same period of the year prior.
Today’s earnings report has SPOT stock seeing strong trading volume. As of this writing, just over 2 million shares of the stock have changed hands. That’s closing in on its daily average trading volume of about 2.3 million shares.
SPOT stock is up 15.8% as of Wednesday morning.
There’s more stock market news for traders to dive into below!
InvestorPlace has all of the latest stock coverage investors need to know about for Wednesday! That includes why shares of Cassava Biosciences (NASDAQ:SAVA) and Coinbase (NASDAQ:COIN) are moving, as well as the biggest pre-market stock movers from this morning. You can find out all about these topics at the links below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.