It’s been an eventful week for music on the stock market.
Spotify’s Daniel Ek, though, might have been left seeing red.
Spotify’s share price fell to an all-time low of $125.55 at the close of trading yesterday (Thursday, December 13), as the firm’s market cap dipped below $23bn for the first time, levelling out at $22.7bn.
This dip correlates with the wider decline in US tech stocks over the last few months due to a number of economic and political factors, including a ‘so-called’ trade war between the US and China.
These factors appeared to have played a role in Tencent Music delaying its US IPO, which was originally scheduled for October.
Tencent Music officially start trading on Wednesday (December 12) at $13 a a share under the symbol TME.
The company raised around $1.1bn, having offered 82,000,000 shares, ending up with an IPO market valuation on the NYSE of $21.3bn.
TME then went on to open at $14.10/share, rising 10.6% during the morning’s trade, before eventually closing up with a share price of $14.
TME’s second day of trading yesterday (December 13) saw it close at $13.51 per share. However, it opened at $13.25 today (December 14), before dipping to a low of $12.81 by 9.40am ET.
Lest we forget, Spotify’s second day of trading on April 4 2018 saw its stock dip to $135.51 before closing at $144.22, down 3.2% on April 3, when it closed at $149.01 a share.
Over the next four months SPOT’s share price became increasingly valuable, hitting a high point of $196.28 in late July, with a market cap of $35.3bn.
Yet as MBW reported in October, the law of gravity is unavoidable – even in the stocks. And that even goes for California-based Apple, which on the day of that report (October 26) closed on $216.30 a share.
On Thursday (December 13), Apple’s stocks closed much lower, at $170.95.
MBW further reported on Spotify’s tumbling share price on November 12, and that the firm was worth less than $24bn in terms of market cap value for the first time since its New York Stock Exchange IPO in April.
Its market cap has since sunk by another $1bn-plus.
From Spotify’s peak in late July to yesterday’s NYSE close, the company’s market cap had fallen by more than $12bn.
At the time of writing (9:30am ET, December 14) Spotify opened the day’s trading even lower, at $123.85.Music Business Worldwide