Spotify Stock Struggles On Day 2, Live Nation Rises
UPDATE Wednesday After The Close: Spotify stock struggled on day two of trading Tuesday, but Live Nation stock appeared to be recovering from two days of declines, after a New York Times story that it was being investigated by the U.S. Department of Justice. The NYSE had a choppy day overall, but managed to end up .08%.
Spotify stock ended its second day of trading at $145.87 down $4.79 or 2.11%. The stock was on track to lose another 1% in after hours trading.
That's still above the $132 reference price set by the NYSE, but well below the stock's Tuesday opening price of $165.90, when a total of 5.6 million shares changed hands in the first trade. Tuesday's first day closing price of $149.95.
Stock analysts appear worried about Spotify's path to profitability. Gabelli & Co's John Tinker initiated his coverage yesterday of Spotify with a "hold" rating. "Apple is growing faster than Spotify and has a different business model whereby music does not have to be profitable on a standalone basis," Tinker wrote and predicted $130 per share price for the stock this year.
Live Nation stock, on the other hand, had a strong up day after two day of losses totalling 13%. At Wednesday's closing bell, Live Nation was trading at $38.43, up $1.82 or 4.97%.