Spotify’s rollercoaster ride on the New York Stock Exchange has officially hit a trough, as the streaming giant’s stock price slips close to an all-time low.
It’s been a wretched time for tech stocks, so much so the team preparing the Tencent Music Entertainment flotation hit the handbrake, and entered a waiting game for calmer waters.
Spotify, the biggest name in music streaming, is feeling the force of the downturn as its stockprice on Monday slipped to at an all-time day-close of $139.11, having dipped to $137.01 the day’s trading. That’s well down on Spotify’s $165.90 per-share price on its first day of public life back in April 3, and it feels like a lifetime away from its record high of $198.99, reached during intraday trading in late July.
In basic terms, volatility in global markets has stripped out about $10 billion of Spotify’s market cap in the space of three months. Investing in tech was never for the faint-hearted.
Investors and shareholders will hope the stock price rallies when Daniel Ek and Co. present Spotify’s third-quarter performance in an earnings call this Thursday. For its second quarter, Spotify boasted 180 million monthly active users, with 83 million of those paid-subscribers, up 30% and 40% respectively.
Total revenue for the period was €1.273 billion ($2 billion), up 26% year-on- year, while posting operating losses of €90 million ($144 million), some 7% of all revenue. Prognosticators at S&P Global Market Intelligence are tipping Thursday’s update to show a slight rise in revenues and, of course, a expanding subscriber base.