Spotify stock closed at $141.70, down 5.7% on Thursday, after the streamer said that it would continue to sacrifice profit margins to generate growth. The stock downturn came despite a nearly profitable quarter and represents a 30% drop from its IPO day close.
“Operating margin improvement in Q3 was largely due to shortfalls in hiring,” the company said in a statement, along with a pledge to accelerate investments in research and development in features and content during 2019. That, said Spotify will reduce its operating margins “for the foreseeable future.”
