The year-end value of Spotify’s stock was $76.61 per share at the close of the market on December 28th, indicating a 68.62% decrease since the start of the year. This raises concerns about the stock’s future performance in 2023.
The tech and entertainment industry has faced challenges in 2022, with stocks such as Meta (down 65.85%), Snap (down 81.65%), and Netflix (down 53.65%) all experiencing drops. Investors are questioning the outlook for Spotify, which had a promising start to 2022. The potential for a future recession has also been a factor in these discussions.
To counter the drop in stock value, Spotify is focusing on its live-audio offerings and working to reduce expenses in the podcasting industry, where it has invested billions in recent years. Executives have implemented layoffs in the podcast units and canceled several original programs to cut costs.
Despite these efforts and a 21% YoY increase in quarterly revenue to €3.04 billion, Spotify reported a Q3 operating loss of €228 million.
The company’s fourth-quarter results will be released on January 31st before the market opens.
Written by: Artificial Intelligence Technology