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Spotify’s public offering faces turbulence in the context of greater market malaise. Between Britain’s Brexit fears, a possible U.S. government shutdown, and tensions in the U.S.-China relationship, market confidence is at a very relevant low, and none of this has been profitable for Spotify.
In late November Spotify (SPOT) shares slipped to an all-time low of $120–they currently sit at $132 per share. Investment firms are showing by-and-large continued support of the stocks, though Spotify’s valuation had hovered near $199 as recently as July. Since then Spotify has lost nearly $12 billion in market cap.
Spotify has faced considerable competition from Apple music in the last year, and the overall market turbulence combined with the presence of major competitors may also spell trouble for the future of the Chinese streaming service Tencent Music, whose shares start trading today.