Spotify Expands to Developing Countries; Atlantic Cuts Rating

Spotify says it is expanding to 85 new countries, mostly developing, in Asia, Africa, the Pacific and the Caribbean.
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Spotify  (SPOT) - Get Report is planning to launch in 85 new markets, expanding the music and podcast streaming service to more than a billion more potential listeners. 

The Luxembourg company unveiled the plan during a livestream event featuring pop singer Justin Bieber as well as the U.K. royals Prince Harry and Meghan Markle. 

Most of the company's new markets are developing countries in Asia, Africa, the Pacific and the Caribbean. 

“Some of the places we’re going, like Bangladesh, Pakistan and Nigeria, have the fastest growing internet populations in the world,” Spotify spokesman Alex Norstrom said, according to the BBC. 

Separately, analysts at Atlantic Equities cut their rating on the company's stock to neutral from overweight. The firm also set its price target at $370 a share, indicating 6% potential upside from the stock's Monday close. 

Spotify shares at last check were down 2.3%. They'd fallen 4% on Monday to $349.91. 

Earlier this month, Spotify reported a wider-than-estimated fourth-quarter loss and predicted first-quarter revenue that trailed expectations.

The company estimated revenue of 1.99 billion euros ($2.42 billion) to 2.19 billion euros ($2.66 billion). The FactSet analyst consensus called for 2.2 billion euros.

In the first quarter, the company registered a net loss of 125 million euros, or 0.66 euro a share, widening from 101 million euros, or 0.58 euro a share, in the year-earlier period. The analyst consensus called for a loss of 0.51 euro per share.

Revenue climbed 9.8% to 2.17 billion euros, topping the analyst consensus of 2.14 billion euros.

The monthly average user tally soared 27% to 345 million, besting the analyst forecast of 343.8 million euros.