Spotify Stock (SPOT) Has Lost Nearly 25% of Its Value In 2022 and 45% Over the Past Year — What’s Going On?

Spotify stock (NYSE: SPOT) dipped by nearly five percent during Tuesday’s trading hours and has parted with almost one-quarter of its value since the start of 2022. All of which is prompting Wall Street — and previously high-flying stakeholders — to discuss the downturn’s potential causes.

Having finished at $193.52 per share on Monday, Spotify stock was worth $184.04 per share when the market closed on Tuesday – a 4.92 percent decrease on the day, a 13.59 percent decline across the last five days, and a full 23.50 percent falloff over the past six months.

Furthermore, as mentioned at the outset, SPOT’s present value represents a 24.62 percent slip since 2022’s beginning, when the stock was worth north of $244 per share.

The broader slide is stunning: back in late January of 2021, SPOT was hovering around $337 a share. Since that point, SPOT has witnessed a $152 plunge, which translates into a 45% drop in just one year. Tuesday’s price represents a modest 24.42 percent gain from the Stockholm-based company’s 2018 public offering.

Of course, it’s impossible to pinpoint the precise factors that are dragging SPOT down, but the movement arrives amid broader market corrections and a shift away from unprofitable and/or tech stocks.

The S&P 500 is down about 9.2 percent on the year, and pandemic darlings like Netflix (NASDAQ: NFLX) and Peloton (NASDAQ: PTON), which cracked all-time-high prices in late 2020 and 2021, have posted double-digit stock-price losses to this point in 2022. To be sure, NFLX is down approximately 39 percent/$231 since January 3rd, compared to a 25 percent/$9 decline for PTON during the same stretch. The latter stock had surged past the $165 mark heading into 2021.

Bringing the focus back to recent developments concerning Spotify specifically, a number of issues are emerging. After years of surging subscriber growth, the numbers are plateauing in wealthier nations like the US. Diversifications into arenas like podcasting also remain speculative: just recently, Spotify shut down its pioneering podcast studio – and laid off some of the division’s 10 to 15 employees. Though the move appears inconsequential in the context of Spotify’s multibillion-dollar bet on podcasts, it doesn’t seem to spell confidence in the format.

And with the company set to detail its Q4 2021 revenue specifics eight days from now, on Wednesday, February 2nd, it’ll be interesting to see how podcasts performed in terms of interactions as a percentage of Spotify MAUs.

Notwithstanding the addition of 300,000 podcasts during Q3 2021 (for a total of 3.2 million programs), Spotify only noted on the engagement front: “The percentage of MAUs that engaged with podcast content continued to increase throughout the quarter, marking an acceleration relative to Q2 trends.” Said percentage remained flat at 25 percent from Q4 2020 into Q1 2021 and increased “modestly” between last year’s first and second quarters.

The broader profitability picture remains problematic, though 2022 could be Spotify’s turnaround year. Whether Wall Street responds to those improvements remains unclear, however, especially given massive macroeconomic headwinds like raging inflation, expected interest rate increases, and even broader political instability.

Meanwhile, some are speculating that Spotify could follow Netflix in raising its prices – a significant possibility because music streaming services feature similar song libraries and mainly cost the same in the States. Plus, Spotify’s long-awaited HiFi support doesn’t yet have a release date, company officials announced two weeks ago, despite the fact that Apple Music and Amazon Music unveiled the feature at no added cost last summer.

37 Responses

  1. Poppy Brown

    It’s probably due to Covid. That seems to get blamed for everything these days.

    • Anonymous

      Except this, Covid is only used when needed. Scare tactics are what the Left loves. They do not care about you! Wake up please.

  2. Papa Deux

    Other artists should join Neil and put poor Spot out of it’s misery. Rogan won’t last if the stock continues to tumble.

    • Glen

      My god you people are so stupid. Sooo so stupid. You claim ‘SCIENCE’ until it goes against the propaganda you’ve been tricked into believing. Just like Nazi Germany. One message, coming from the supreme leader. Any dissenting opinion is silenced. My GOD you liberals are so dumb.

    • Robert Coulon

      Take a look at all the stock going on at this time. Almost everyone took a hit on every sector. I’m still waiting for details and facts to back up the misinformation.

  3. Mike Fitzgerald

    Seems doubling down on Covid Disinformation from JRE has a cost, who’d have thunk? Maybe scam docs like Malone and McCullough isn’t such a good idea. Just a thought.

    • Aaron Burr

      Questioning the science is literally science though. Ask Galileo.

    • Robert C

      Can you explain in detail what Malone and Mcullough have said that makes them “scam”? With the details, please provide your references.

    • Trenton

      Rogan will survive no matter what happens to Spotify. Neil Young doesn’t own his own music, so he has no say what happens to it. Joe Rogan has a bigger audience than all your fake news put together. Why is everyone hating on him because he had LITERALLY the scientist who helped develop MRNA vaccines on telling the truth that Phizer doesn’t want you to know? You all hate the truth that much that you want to silence anyone who you don’t agree with? Get a life.

    • Anonymous

      Wish you would do your research and stop being a sheep Mike Fitzgerald. Put some respect on Joes name you ass hat

  4. Adam Silverstein

    My law partner rep’d Young against Trump for unauthorized use of the catalog. We won in 8 hours. Least I could do was cancel all our Spotify accounts. I wouldn’t give $ to Rupert Murdoch to undermine American democracy. I won’t give it to Spotify either.

  5. Ted

    People are canceling their Spotify accounts because of Joe Rogan.

      • MAd

        Here ya go
        24 Musicians Against Spotify And Other Streaming Services
        Ranker Music
        Updated January 27, 2022 106.3k views24 items

        • MAd

          Source and partial list
          24 Musicians Against Spotify And Other Streaming Services
          https://www.ranker.com › list › ranker-music
          The Beatles
          Taylor Swift
          Neil Young
          Pink Floyd
          Coldplay
          Garth Brooks
          The Black Keys
          Tool
          Beck Hansen
          Pete Townshend
          Thom Yorke
          Bob Seger

        • MAd

          Source and partial list
          24 Musicians Against Spotify And Other Streaming Services
          list › ranker-music
          The Beatles
          Taylor Swift
          Neil Young
          Pink Floyd
          Coldplay
          Garth Brooks
          The Black Keys
          Tool
          Beck Hansen
          Pete Townshend
          Thom Yorke
          Bob Seger

  6. Nile

    Not only has the interface for the app become problematic, Spotify, against of the user base advice and desire, went into contract with Rogan. Everyone talked about how controversial he is. WELL here we are, In a hot mess over this idiot who should never have been hired in the first place because everyone knew something like this would happen. Spotify took the gamble on white males saving them. I have deleted the app

    • Shane

      JRE makes Spotify significantly more than Neil Young does. Very easy decision

    • Niles Mom

      Nile, your a fucking bot or one of those people who wears their cloth mask in their car by themselves because you think it’s going to save you. Wake up Nile before it’s too late.