Explicit content has been discovered in Spotify Technology S.A. (NYSE:SPOT) search results, sparking user outrage over apparent moderation loopholes.

What Happened: Over the weekend, a Reddit user shared a screenshot showing a pornographic video appearing in search results for British rapper M.I.A.

One account, known for erotic audio, has recently begun posting sexually explicit videos, noted The Verge. Another account, identified by a random alphanumeric name, has been uploading similar content as podcasts since mid-November.

Spotify representative Laura Batey told the publication that the reported content was removed for violating policies that prohibit sexually explicit material.

The streaming giant did not immediately respond to Benzinga's request for comments.

This issue is not new; previous Reddit posts and a 2022 Vice article have pointed out similar explicit content, including graphic nudity in playlist cover art.

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Why It Matters: Earlier this year, Elon Musk's X, formerly Twitter, faced criticism for a surge in pornographic content, attributed to reduced content moderation.

Meta Platforms, Inc.'s (NASDAQ:META) Instagram has also been under scrutiny for suggesting sexualized content of minors to adult users.

In November, Spotify reported quarterly revenue of $3.99 billion, which missed the projected $4.02 billion but marked an increase from last year's sales of $3.65 billion during the same period.

Price Action: Spotify's stock has risen 141.78% year-to-date, according to data from Benzinga Pro. Analyst reports from Canaccord Genuity and Goldman Sachs have set a consensus price target of $525 for SPOT, suggesting a potential upside of 15.01%.