Yes, the company’s annual subscriber growth in 2021 was slower than it was in the previous two years (see below).īut Spotify’s annual subscriber revenue growth in 2021 was actually larger than it was in 2020. In truth, there was a lot of very positive news in Spotify’s Q4 2021 results. That’s especially true of the news that Spotify offered softer guidance than analyst expectations for both (i) Q1 2022 premium subs additions (SPOT’s expecting 3 million new subs this quarter analysts wanted to see 4 million), and (ii) Q1 2022 gross profit margin. However, each of them has also lowered their price expectation for SPOT stock.Ĭertainly, not all analysts responded favorably to some of Spotify’s announcements within its Q4 2021 results last week. The likes of Guggenheim’s Michael Morris, BOFA’s Jessica Erlich, Truist Securities’ Matthew Thornton, and Rosenblatt Securities’ Mark Zgutowicz have all recently reiterated their view of Spotify as a ‘Buy’. Source: Google FinanceĪnalysts generally remain positive on the prospects for Spotify’s stock – just not necessarily as positive as they once were. It is true that Spotify’s market cap tumbled fairly dramatically in the days following the removal of Neil Young’s music from the service (January 26).īut SPOT’s share price is actually now back to pre-Young-fallout levels: Last month, at trading close on the day Young’s music came down, Spotify’s share price was at $174.79 it closed yesterday (February 9) at $175.49.

Joe Rogan fracas has sunk Spotify’s share price is similarly over-baked. Indeed, the Dow Jones US Technology Index, which tracks the stock performance of US companies in the technology industry, has itself grown by 17.9% in the same time period. But the widely subscribed-to idea that it’s all merely part of a wave of tech stocks taking a hammering is a misnomer.įor example, Apple‘s share price in the same period (Februthrough February 10, 2022) has grown by a third ( +33%). The reasons behind this collapse in Spotify’s share price are numerous.

That’s less than half the size of where it was at its peak in the prior year, on February 19, 2021: $69.35 billion.

At the time of writing (on February 10), according to YCharts, Spotify’s market cap value on the New York Stock Exchange sits at $32.26 billion.

Spotify stock drop