Spotify is experiencing a significant decline in its stock price, with shares falling over 8% on Tuesday afternoon, marking the company’s most challenging trading day since July. This downturn appears to be primarily influenced by substantial after-hours block trades that occurred on Monday.
On Monday at 4:52 p.m. ET, a considerable block trade involving 300,000 shares was executed, each priced at $508.58, resulting in an impressive $152.6 million withdrawal from the market. This transaction accounted for approximately 12% of Spotify’s average daily trading volume over the last 20 sessions. Additionally, just before the market closed on Monday, another large sale of 131,757 shares at the same price contributed to the overall decline, bringing the total withdrawal to about $220 million.
Adding to the situation, Spotify is set to announce its fourth-quarter and full-year earnings results in just a week, which is always a critical moment for investors. This month also marks the company’s third increase in subscription prices in the United States over the last three years, a trend that could influence user retention and revenue growth going forward.
Despite the current volatility, Spotify’s strong market presence and ongoing adjustments in its subscription strategy position it for potential recovery and growth in the future. Investors will be keenly watching the upcoming earnings report to gauge the impact of recent changes and overall company performance.