Spotify’s inventory fell 6.6% after two main bulletins shook investor confidence. CEO Daniel Ek will step down on January 1, 2026, shared final week. He will likely be changed by co-CEOs Alex Norström and Gustav Söderström and the downgrade the Stock from Goldman Sachs.
Management Shake-up & Goldman Sachs Downgrade
Daniel Ek will step down as Spotify’s CEO on January 1, 2026. Alex Norström and Gustav Söderström will take over as co-CEOs. The management change comes after Spotify’s inventory surged 120% since July 2024, far outpacing the S&P 500’s 20% acquire.
Goldman Sachs downgraded Spotify from “purchase” to “impartial.” The agency additionally lowered its worth goal from $770 to $765. Analysts consider the inventory already displays a lot of Spotify’s current development. Spotify’s efficiency has been blended. The corporate reported a €100 million web loss in Q2 2025, reversing a €274 million revenue from the earlier 12 months. Income rose 10% to €4.85 billion however missed expectations on account of weak advert gross sales and forex points. CEO Ek admitted that promoting underperformed. Advert-supported income grew solely 5% on a currency-neutral foundation. Spotify plans to enhance its advert instruments and discover new pricing fashions. Regardless of the setback, Goldman Sachs expects Spotify to develop. Forecasts present mid-teens income development over the subsequent few years. The corporate goals to chop music royalty prices and broaden in rising markets. It additionally plans to monetize video podcasts and launch new subscription tiers. Spotify elevated its inventory buyback program from $1 billion to $1.9 billion. Nonetheless, the corporate delayed its “superfan” tier, providing no clear timeline.
Spotify faces a essential turning level. Management modifications and investor warning have shaken confidence. But, the corporate continues to push ahead with daring plans. If it executes effectively, Spotify may regain momentum and strengthen its market place. Keep tuned to EDMTunes for all of your newest music updates.
