Spotify Loses Billions in Value After CEO Succession News; Sphere Stock Continues ‘Oz’-Driven Rally

Spotify is worthy $7.4 cardinal little aft the institution announced connected Tuesday (Sept. 30) that CEO Daniel Ek volition become enforcement chairman and 2 longtime Spotify executives volition go co-CEOs.

News that existent co-presidents Alex Norström and Gustav Söderström volition stock enactment duties for the euphony streaming elephantine sent Spotify’s shares down 5.0% to $680.50 for the week ended Oct. 3, lowering its marketplace capitalization to $139.3 billion. Norström and Söderström, who are already liable for Spotify’s strategical and operational efforts, volition study to Ek and are expected to articulation the company’s board. 

Analysts were upbeat astir Norström and Söderström, however, noting the executives’ acquisition and the company’s beardown show arsenic the duo has taken connected greater responsibilities successful caller years. CFRA, which has a $790 terms people connected Spotify, called Tuesday’s terms pullback “a buying opportunity.”

Spotify’s stock terms has fallen 7.4% implicit the past 2 weeks and present stands much than $100 disconnected its all-time precocious of $785.00 acceptable successful June. Even so, the company’s most caller net results provided much of the maturation that investors person go accustomed to seeing. In the 2nd quarter, the company’s full gross grew 15% year-over-year to $4.9 billion, and subscribers roseate to 276 million. Spotify volition merchandise third-quarter net connected Nov. 4. 

Before Spotify’s announcement connected Tuesday, Goldman Sachs downgraded the company’s banal to a “neutral” rating, saying overmuch of its maturation imaginable is already priced into the stock price, portion J.P. Morgan raised its terms people to $805 from $740. Also, Argus initiated coverage with a $845 terms people and a “buy” rating.

Spotify’s diminution dragged down the 19-company Billboard Global Music Index (BGMI), which fell 2.6% to 2,956.39. The scale was evenly split, with 9 stocks gaining worth and 9 losing value. One stock, Cumulus Media, was unchanged.  

The week’s top gainer was Sphere Entertainment Co., which roseate 6.7% to $62.97 arsenic investors continued to respond positively to the success of The Wizard of Oz. The institution down Las Vegas’s Sphere venue acceptable a caller all-time precocious of $67.97 connected Friday (Oct. 3) and has gained 57.9% successful the past 7 weeks.

iHeartMedia roseate 5.9% to $2.87, bringing its year-to-date summation to 34.7%. Universal Music Group gained 4.0% to 24.97 euros ($29.32). SiriusXM improved 2.6% to $23.28. 

Elsewhere, Warner Music Group roseate 1.7% to $33.86. Bank of America raised its terms people for WMG’s banal to $36 from $33, portion UBS reiterated its “buy” standing and $40 terms people connected WMG shares, citing expected benefits from the mode integer platforms wage royalties. 

A fewer different ample companies joined Spotify successful the “losers” column. SM Entertainment dipped 3.5%, adding to its 13.9% diminution successful the erstwhile week. The 2 Chinese euphony streamers besides mislaid value: Tencent Music Entertainment was down 3.1% and Netease Cloud Music fell 2.6%. 

Live Nation dropped 3.4% to $156.32 and has dropped 10.0% implicit the past 4 weeks. On Thursday (Oct. 2), Goldman Sachs increased its terms people to $170 from $168 and maintained its “buy” rating. Live Nation was Read Entire Article