Spotify’s stock took a hit last week, dropping over 11% after their Q2 earnings missed revenue and operating income expectations. Despite that, their user base keeps growing, hitting nearly 700 million monthly active users and over 276 million premium subscribers, which is a positive sign. Analysts are cautiously optimistic, maintaining buy ratings due to the company’s strong growth potential. Spotify is also working on diversifying its revenue by introducing a la carte purchases like audiobooks, moving beyond just subscriptions and ads.
But I can’t help wondering how the new ID rules around user data might impact them. If ad targeting gets less precise, could that seriously hurt their ad revenue? It feels like a big risk no one’s fully figured out yet. Plus, with Spotify now requiring age verification through facial scanning or ID submission to comply with the UK’s Online Safety Act, some users might be put off or even lose access - something that could slow down user growth or drive people away. Makes me think twice about how smooth their growth really will be.