Spotify Stock Slips Amid CEO Transition and Goldman Sachs Downgrade

Spotify’s stock fell 6.6% after two major announcements shook investor confidence. CEO Daniel Ek will step down on January 1, 2026, shared last week. He will be replaced by co-CEOs Alex Norström and Gustav Söderström and the downgrade the Stock from Goldman Sachs.

Leadership Shake-up & Goldman Sachs Downgrade

Daniel Ek will step down as Spotify’s CEO on January 1, 2026. Alex Norström and Gustav Söderström will take over as co-CEOs. The leadership change comes after Spotify’s stock surged 120% since July 2024, far outpacing the S&P 500’s 20% gain.

Goldman Sachs downgraded Spotify from “buy” to “neutral.” The firm also lowered its price target from $770 to $765. Analysts believe the stock already reflects much of Spotify’s recent growth. Spotify’s performance has been mixed. The company reported a €100 million net loss in Q2 2025, reversing a €274 million profit from the previous year. Revenue rose 10% to €4.85 billion but missed expectations due to weak ad sales and currency issues. CEO Ek admitted that advertising underperformed. Ad-supported revenue grew only 5% on a currency-neutral basis. Spotify plans to improve its ad tools and explore new pricing models. Despite the setback, Goldman Sachs expects Spotify to grow. Forecasts show mid-teens revenue growth over the next few years. The company aims to cut music royalty costs and expand in emerging markets. It also plans to monetize video podcasts and launch new subscription tiers. Spotify increased its stock buyback program from $1 billion to $1.9 billion. However, the company delayed its “superfan” tier, offering no clear timeline.

Spotify faces a critical turning point. Leadership changes and investor caution have shaken confidence. Yet, the company continues to push forward with bold plans. If it executes well, Spotify could regain momentum and strengthen its market position. Stay tuned to EDMTunes for all your latest music updates.