Spotify shares slide 7% amid tech sell-off, down over 23% in 2026

The streaming giant’s stock has now reversed the gains it achieved during 2025, when shares peaked at $785 in June, following a period of strong market performance.

Analysts note that tech companies such as Spotify are facing mounting pressure to deliver stable financial results and maintain healthy margins in an environment of economic uncertainty and rapid technological change, including the rise of artificial intelligence.

Investors are also monitoring the company’s recent price increases closely. While Spotify has raised subscription costs, competitors Apple Music and Amazon Music have largely maintained existing pricing structures, adding features to attract new users instead.

“With new AI developments and competitive pressures, investors are scrutinising subscriber behaviour and potential churn,” said a market analyst. “Any sign of slowing growth or dissatisfaction among long-term users could have a significant impact on Spotify’s valuation.”

Spotify is scheduled to release its earnings report on 10 February, with expected earnings per share (EPS) between $2.95 and $3.20 on projected revenue of approximately $5.16 billion. Analysts suggest that strong earnings could stabilise the stock, while disappointing results may prolong the downward trend.

Despite the recent decline, Spotify has received positive ratings from investment banks including Citigroup and Goldman Sachs, which have maintained “Buy” recommendations for the stock.

The company also faces increasing competition in retaining subscribers. Services offering features similar to Spotify’s “Wrapped” year-end recap and playlist transfer tools make it easier for users to switch platforms, reducing brand loyalty and increasing pressure on market leaders.