New York, Feb 4, 2026, 14:25 EST — Regular session
- Spotify shares dropped roughly 6% in afternoon trading, as growth stocks faced another wave of selling pressure
- On Tuesday, payments firm Checkout.com announced a global acquiring partnership with Spotify
- Investors are turning their attention to next week’s quarterly update, searching for signs on pricing and subscriber trends
Spotify Technology S.A. shares dropped Wednesday, dragging the NYSE-listed music streamer further into the tech sector’s slump.
The stock dropped 5.6% to $447.41 in afternoon trading, after hitting a low of $440.75 earlier. It started the day at $462.66 and climbed as high as $475, with roughly 4.4 million shares traded.
This move is significant as Spotify approaches its next quarterly report with slim margin for error. Traders have shown a tendency to pull back sharply on any dips, and Spotify’s trading behavior has shifted back toward that of a high-beta tech stock.
Investors are now shifting focus beyond minor gains to one clear question: will the subscription model hold up if consumers and advertisers start to pull back?
The broader market showed signs of weakness, as the Nasdaq dipped amid a sell-off in software and cloud shares. Investors are jittery over rapid AI advancements potentially disrupting established business models. “If you’ve got legacy software that’s old and clunky, you’re a ripe target for AI,” said Josh Chastant, portfolio manager at GuideStone Funds. (Reuters)
Spotify added fresh company news Tuesday. Checkout.com announced it will handle global acquiring services — the card processing that approves subscription charges — for Spotify in over 180 countries. Spotify payments chief Sandra Alzetta described the aim as “a seamless, simple, and safe payment experience.” Checkout.com CEO Guillaume Pousaz called the partnership “a significant milestone.” (Checkout)
The partnership relies on tools designed to route transactions and reduce failures—plumbing tweaks that rarely make headlines the following day. Yet, it underscores how Spotify’s business depends on recurring payments clearing each month, across every market.
Investors are watching closely for initial churn data as the new pricing takes effect. In January, Spotify announced updated Premium prices in the U.S. and certain other markets, with notifications sent to customers during the subsequent month. (Spotify)
The risk is clear-cut. If Spotify’s quarterly report shows slower subscriber growth, a weaker advertising market, or rising expenses, the stock could stay under pressure despite small gains in product and payment areas.
Spotify’s Q4’25 earnings call is set for Tuesday, Feb. 10, at 8:00 a.m. Eastern. This event could shake up the stock, which has been showing sharp day-to-day moves lately. (Webinar)
