Spotify (NYSE:SPOT) stock slipped on Tuesday after the company announced a management transition.
The company named Gustav Söderström and Alex Norström as Co-CEOs, succeeding founder Daniel Ek, who will step down as CEO to become Executive Chairman effective January 1, 2026.
Both will report to Ek and, pending shareholder approval, join the company’s board of directors.
Also Read: Spotify’s Price Hikes Leverage Non-Music Content For Higher Profits
The leadership change formalizes a structure Spotify has operated under since 2023.
Recent Earnings
Spotify stock declined after the company posted a surprise second-quarter loss and provided weak guidance, prompting Wall Street analysts to trim their price forecasts despite strong user growth.
Rosenblatt analyst Barton Crockett called the results “mixed,” noting Spotify added 8 million premium subscribers and 18 million monthly active users, but missed revenue expectations due to foreign exchange impacts and higher social charges.
KeyBanc’s Justin Patterson highlighted double-digit subscriber and MAU growth but flagged ad softness and foreign exchange headwinds. He noted Spotify remains attractive heading into 2026.
Benchmark’s Mark Zgutowicz cited weak ARPU guidance and soft ad performance as reasons for trimming estimates and cutting his target to $800 from $840. Still, he pointed to long-term upside from pricing power, podcast margin expansion, and a potential Supremium tier.
Bank of America Securities analyst Jessica Reif Ehrlich struck the most bullish tone. She said strong engagement and multiple monetization levers outweigh near-term ad challenges, viewing the pullback as a buying opportunity.
Spotify stock gained 63% year-to-date, surpassing the Russell 1000 Index’s (which includes Spotify) 13% returns, driven by its price hikes on subscription plans and growth in key areas, including podcasts and audiobooks, particularly video podcasts.
SPOT Price Action: Spotify Technology shares were down 2.54% at $710.00 during premarket trading on Tuesday. The stock is trading within its 52-week range of $362.31 to $785.00, according to Benzinga Pro data.
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