Spotify's shares have declined nearly 20% since the September announcement that CEO Daniel Ek would step down to become executive chairman. The stock ended the week of November 21 down 8.2% at $583.62, contributing to broader losses in the music industry index. Investors appear skeptical about the leadership transition to co-CEOs Alex Norström and Gustav Söderström.
Announcement Details
Spotify revealed on September 30 that longtime CEO Daniel Ek would transition to the role of executive chairman, with co-founders Alex Norström and Gustav Söderström taking over as co-CEOs. In an open letter, Ek emphasized continuity, stating that 'very little will change' under the new structure. He described his chairman role as adopting a 'more hands-on' European-style approach compared to traditional U.S. models.
Stock Performance Impact
The announcement triggered immediate investor concerns, leading to a 19.9% drop in Spotify's share price since September 30. This erased approximately $29.7 billion in market value. The stock, which reached an all-time high of $785 on June 27, fell more than 7% in the days following a separate announcement about acquiring WhoSampled, a song samples database to support the new SongDNA feature. For the week ended November 21, shares declined 8.2% to $583.62, marking the worst performance among major music companies.
Broader Market Context
Spotify's downturn influenced the Billboard Global Music Index, which fell 4.8% to 2,571.67, now 17.5% below its June peak. The index has seen no gains in 10 weeks amid global market declines, including a 2.7% drop in the Nasdaq and 1.9% in the S&P 500. Despite 2025 being a relatively strong year for Spotify's stock compared to peers, the CEO change has amplified recent pressures.