Spotify Shares Down 8% This Week, Have Fallen 20% Since CEO Change Announcement
Spotify’s stock has recently taken a significant hit, plummeting more than $200 from its all-time high of $785.00, which was reached on June 27. As of November 21, the streaming giant’s shares closed at $583.62 after a steep 8.2% decline in just one week. This downturn followed the announcement of Spotify’s acquisition of WhoSampled, an online database that catalogs song samples, intended to enhance their new feature, SongDNA, which aims to provide detailed song credits. Despite the strategic nature of this acquisition, investor sentiment has been largely negative, reflecting a broader trend of skepticism regarding Spotify’s future leadership and direction.
The decline in Spotify’s stock is particularly pronounced in the wake of CEO Daniel Ek’s decision to step down from his role, transitioning to the position of executive chairman. Ek’s reassurances that “very little will change” under the leadership of co-CEOs Alex Norström and Gustav Söderström have not alleviated investor concerns. Since the leadership announcement on September 30, Spotify’s stock has dropped nearly 20%, erasing approximately $29.7 billion in market value. The overall market sentiment has been bearish, with the Billboard Global Music Index (BGMI) falling by 4.8% due to Spotify’s poor performance, marking a 10-week streak without gains. This broader market downturn is echoed across various indices, including notable declines in the Nasdaq and S&P 500.
In contrast, Warner Music Group (WMG) showed resilience in the face of market challenges, with its shares fluctuating but ultimately rising by 1.1% to $30.69 after a mixed earnings report. Analysts remain optimistic about WMG’s strategic ventures, particularly their joint partnership with Bain, which is expected to drive both revenue and earnings growth. Other music stocks, such as CTS Eventim and NetEase Cloud Music, have also experienced varied performances, with the former gaining 7.2% following positive earnings and the latter facing a 7.1% decline despite being one of the year’s top performers. Overall, the music industry is witnessing a complex interplay of growth and decline, with Spotify’s struggles underscoring the challenges faced by major players in the sector.
Spotify’s stock price has fallen more than $200 below its all-time high of $785.00 set on June 27 after falling 8.2% to $583.62 in the week ended Friday (Nov. 21). The Swedish streaming giant’s share price dropped more than 7% in the two days after it announced the
purchase of WhoSampled
, an online song samples database, to power a new song credits feature, SongDNA.
Investors’ reaction to a relatively small acquisition appears to be part of a larger theme in recent weeks. While Spotify is one of the better-performing music stocks of 2025, it has struggled since the company announced on Sept. 30 that CEO
Daniel Ek
will step down
and assume the role of executive chairman. Ek attempted to assuage investors who might be wary of his departure, saying in an open letter that “very little will change” when Spotify is led by co-CEOs
Alex Norström
and
Gustav Söderström
, two longtime Spotify executives. Ek added that he will operate with a European-style approach to the executive chairman position that is “more hands-on than the traditional U.S. model.”
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But investors aren’t showing much faith in the post-Ek era. Since the announcement, Spotify shares have fallen 19.9%, erasing $29.7 billion of market value.
Driven by Spotify’s 8.2% decline — the worst for all music companies this week — the Billboard Global Music Index (BGMI) fell 4.8% to 2,571.67. Eight of the index’s companies had gains while 11 finished the week with losses. The BGMI has not posted a gain in 10 weeks and now stands 17.5% below the all-time high of 3,117.20 set during the week of June 30.
Markets were down around the world this week. In the U.S., the Nasdaq fell 2.7% to 22,273.08 and the S&P 500 dropped 1.9% to 6,602.99. The U.K.’s FTSE 100 sank 1.6% to 9,539.71. South Korea’s KOSPI composite index and China’s Shanghai Composite Index each dropped 3.9%.
Warner Music Group (WMG) finished the week up 1.1% to $30.69. After
releasing earnings
on Thursday morning (Nov. 20), WMG shares dropped 2.7% on Thursday but gained 3.4% gain on Friday. Investors may not have received their desired message from WMG management, but analysts were upbeat about the numbers and management’s outlook. CFRA bumped WMG shares up to a “hold” rating from the “sell” rating it issued in July. Guggenheim kept its “buy” rating and $37 price target while noting that WMG’s “capital efficient” joint venture with Bain is likely to provide growth to both revenue and earnings. J.P. Morgan, which maintained its “overweight” rating and $40 price target, was “encouraged” by WMG management’s comments on margin expansion and market share gain.
Related
Warner Music Fiscal Full-Year Earnings Highlights: Subscription Growth, AI for Dealmaking & More
CTS Eventim shares rose 7.2% to 84.65 euros ($97.52). The German concert promoter and ticketing company
released third-quarter earnings
on Thursday that showed revenue rose 4%. The week’s gain brought CTS Eventim’s year-to-date gain to 0.8%.
Netease Cloud Music fell 7.1% to 189.40 HKD ($24.33) after its third-quarter earnings, released on Thursday, revealed a 2% decline in revenue. Cloud Music remains one of the year’s best-performing music stocks, however, with a 2025 gain of 68.8%.
Live Nation shares fell 3.9% to $130.55. Deutsche Bank
lowered
its price target to $160 from $173, which suggests 22.6% of upside based on Friday’s closing price, and maintained its “buy” rating.
The week’s greatest gainer was Cumulus Media, which rose 29% to $0.11. Such large swings are common for Cumulus, which has lost 85.7% of its value in 2025 and experiences sizable moves when it rises or falls a mere penny. With a market capitalization of just $2 million, the radio broadcaster has little effect on the BGMI.
Billboard.com
Billboard.com
Billboard.com
