Shares of Spotify (SPOT -11.51%) dropped as much as 12.2% in trading on Tuesday after the company reported second-quarter 2025 financial results. Spotify is still growing, but ad revenue was disappointing and investors are rethinking just how expensive this company should be.

*Stock prices used were end-of-day prices of July 29, 2025. The video was published on July 29, 2025.