Spotify Stock (SPOT) Plunges Another 7%, Erasing All 2025 Gains

Photo Credit: Digital Music News

Spotify stock takes another hit in Wednesday trading amid a broader rout in tech stocks, down 7% on the day and more than 23% in 2026.

Spotify’s stock (SPOT) continues to take a bath in 2026, amid broader downturns across tech and other sectors. On Wednesday trading, the stock ended just above $440—down over 7% on the day, and more than 23% in 2026 alone. The valuation means that SPOT has now erased all of its wildly successful 2025 run-ups, which saw the stock surge to an astounding $785 in June 2025.

Tech stalwarts like Spotify are under increasing pressure to demonstrate stable financial growth and healthy margins in the face of socioeconomic rockiness and new tech like AI. This is especially true of stocks like SPOT, with high price-to-earnings ratios.

Overall, the Nasdaq fell 1.51% on Wednesday, bogged down by continued worries surrounding AI-related valuations. It’s a significant dip that leaves tech investors keenly aware of how new features (or a lack thereof) and price hikes (or a lack thereof) may affect subscriber churn for longtime market leaders like Spotify.

Spotify is due to release its earnings report on February 10, with Wall Street whipping out the magnifying glass to see if there’s any fallout from recent price increases. If things still appear to be on the rise, profits are up, and earnings per share (EPS) seem solid—with an expected $2.95 to $3.20 EPS on revenue of roughly $5.16 billion—that could lead to a serious boon for Spotify and its stock.

It’s an interesting time for Spotify, having recently secured ‘Buy’ ratings from Citigroup and Goldman Sachs—and then promptly taking a dive below $500 per share.

But that dip came after Spotify raised its prices yet again, something not all of its competitors have done as they continue to catch up to the Stockholm streamer’s market dominance. Both Apple Music and Amazon Music, Spotify’s two biggest competitors, have stayed firm on their current pricing while releasing a bevy of features in recent months to put them on par with their peers.

So what happens when longtime Spotify subscribers decide that it’s time to move on? It’s now easier than ever for users of one streaming service to jump ship to another, with the prevalence of playlist transferring services. And Spotify is no longer the only service to offer a “Wrapped”-style year-end listening history recap—something many users have previously cited as their primary reason for sticking with the service.