Spotify’s valuation continues to be eroded on the New York Stock Exchange.
The firm’s share price hit an all-time day-end low of $114.53 yesterday, and at time of publication today (11.11am ET, December 21), it’s sunk by another 4.9% to $108.96.
That, according to Google Finance stats, has resulted in Spotify’s market cap valuation tumbling to $19.73bn.
Spotify has, therefore, seen more than $15bn wiped off its valuation since its peak ($35bn) in late July.
Some of the blame for Spotify’s decline has to be pointed at macro economic factors.
The S&P 500 index, which monitors the total market capitalizations of 500 large companies on the NYSE or NASDAQ, has plummeted since early October, down 15% from October 8 to yesterday (December 21).
Vivendi and Universal Music Group will be watching Spotify’s market cap valuation with particular interest.
Spotify’s performance on the NYSE may be seen by some as an indication of the blockbuster music industry’s health, and therefore a potential influence on UMG’s own valuation.
Vivendi is currently seeking a strategic buyer of up to 50% of Universal – a process it says it wants to have completed by the end of 2019.
Universal also still owns around 3.5% equity in Spotify, and is yet to sell any shares in the streaming business.Music Business Worldwide
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