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Spotify looks to stoke Wall Street enthusiasm amid cooling economy -Breaking

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© Reuters. FILEPHOTO: A silhouette of Spotify is seen on the New York Stock Exchange’s facade. It features a U.S. flag, and its logo as Spotify. The company listed its stock via a direct listing. REUTERS/Lucas Jackson

Dawn Chmielewski, Supantha Moukherjee

(Reuters.) – Audio streaming service Spotify Technology SA (NYSE:), will hold its first investor meeting since it went public in 2018, on Wednesday. This event aims to inspire Wall Street enthusiasm, despite the slower global economy.

Spotify stock fell 53% by 2022. This is worse than 24% in the Communication Services Sector Index, which includes Spotify. Spotify is doing better than other streaming services, such as Netflix (NASDAQ:), which has seen its stock plummet 67% since it lost more subscribers than in a decade.

Spotify continues to grow its users and pay subscribers in the first quarter despite being suspended in Russia and facing controversy about Joe Rogan’s podcasts.

This service revealed that the total number of users monthly surpassed 422,000,000 in the first quarter. That was higher than the consensus estimate. Although advertising was higher than the previous year at 282 million euro ($302million), it still fell short of Wall Street forecasts.

Andrew Uerkwitz from Jefferies expressed concern over the possible fallout from Russia’s attack on Ukraine. Spotify stated that it would cause the death of around 5 million Russian listeners. He suggested that the impact could go well beyond disruptions to subscribers.

Uerkwitz said in an investor letter that it was clear that geopolitical factors were affecting willingness to spend advertising money (not just on SPOT).

Michael Nathanson, one of media analysts, stated that digital advertising will continue to grow despite rising inflation, a recession and the end of an epidemic-driven digital ad spend. Snap Inc The most recent guidance (NYSE:)

“We believe Snap’s warning … that macroeconomic conditions have deteriorated and they will likely miss the low end of their 2Q revenue and profit guidance – reflects softening advertising demand across the industry,” Nathanson wrote of the company’s announcement in late May that it would miss quarterly revenue and profit targets.

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