Spotify Shares Plummet, While Live Nation Defies Market downturn in Music Sector
NEW YORK – Dec. 6, 2024 – Spotify shares experienced a sharp decline this week, falling 5.7% to $564.93, contributing to a broader downturn in music company stock prices. The drop comes as the Nasdaq Composite and S&P 500 continue to see gains, up 4.2% and 3.1% respectively, highlighting a divergence in performance within the entertainment industry. Meanwhile, Live Nation bucked the trend, rising 6% this week.
Over the past 11 weeks, the BGMI (Billboard Music Index) has fallen 18.0%, significantly underperforming the broader market.Several major players within the index have seen ample declines, including Universal Music Group (down 7.3%), Warner Music Group (down 14.7%), Live Nation (down 14.9%), and Spotify (down 23.1%). This downturn reflects investor concerns surrounding the music streaming landscape and broader economic conditions.
Spotify’s recent woes are partially attributed to the announcement on Sept. 30 that CEO and co-founder Daniel Ek would step down as CEO and assume the role of executive chairman at the end of the year, resulting in a 22.4% drop in share price as the announcement. Despite these recent losses, Spotify remains up 21.1% in 2024, outpacing the Nasdaq’s 20.2% gain and the S&P 500’s 15.6% improvement. Though, the stock is now 28.0% below its 52-week high of $785.00.
In contrast, live Nation has shown resilience.Other notable movements included MSG entertainment, wich rose 4.7% to $51.79, while Sphere Entertainment Co., buoyed by the success of The Wizard of Oz, fell 0.3% to $84.31. SiriusXM (up 3.6%), Warner Music Group (up 1.3%), Universal music Group (down 1.3%), CTS Eventim (down 3.6%) and iHeartMedia (down 5.6%) also saw movement this week.
French music streamer Deezer experienced the largest decline alongside Spotify, dropping 6.0% to 1.03 euros ($1.20).
