Spotify stock struggled on day two of trading Tuesday morning, but Live Nation stock appeared to be recovering from two days of declines, after a New York Times story that it was being investigated by the U.S. Department of Justice. The markets overall were down slightly by late morning.Spotify stock fell more than 5% on Wednesday, trading as low as $140.61 by late morning. That's above the $132 reference price set by the NYSE, but well below the stock's Tuesday opening price of $165.90, when a total of 5.6 million shares changed hands in the first trade.
Tuesday's closing price of $149.95 was 9% lower than that, and after hours trading went lower, hovering around $149.
Stock analysts appear worried about Spotify's path to profitability. Gabelli & Co's John Tinker initiated his coverage yesterday of Spotify with a "hold" rating. "Apple is growing faster than Spotify and has a different business model whereby music does not have to be profitable on a standalone basis," Tinker wrote and predicted $130 per share price for the stock this year.
Live Nation stock, on the other hand, appeared to be recovering from two day losses of 13%. As off 11:30 AM ET, Live Nation was trading up almost 3.7% trading at $37.96 despite a down market overall.