Spotify stock takes massive hit since summer
When it comes to music streaming services, few would doubt that Spotify remains king, but healthy competition along with some very complicated financial market trends means the giant has seen a staggering 29% drop in their share value in the last 8 weeks alone.
The news is largely centred around analysis by Brian Russo of top financial services company Credit Suisse. Rest assured the details of the report are about as far as you can get from Wolf Of Wall Street style shenanigans, but cutting through the long and boring numbers, the report essentially sees Spotify’s performance grade change from “Neutral” to “Underperform” which is apparently an upgrade because this was expected and any impact on share price has been calculated in.
All rather confusing, but rather like an unruly schoolchild being told to “do better” by a stern teacher, Spotify now has the eyes and ears of the stock markets pointing firmly at it. Competitors in the new media field such as Amazon Music and Apple Music, the latter having surpassed Spotify in terms of US subscribers earlier this year, are certainly piling on the pressure.
The good news is that it’s nothing new, this being a “52 week low” so they’ve been here before last year, and Spotify still remains top-dog, with their 100 million paying subscribers worldwide giving them a mighty lead over Apple Music’s mere 60 million, though they’re catching up, and fast. Seems now is the time for Spotify to knuckle-down and get that homework in on time if they want to remain at the top of the tree.