Clarifying reminder:
Spotify "losing $4 billion of value" doesn't mean they lost $4 billion or that $4 billion worth of business was taken away from them by cancelations.
It's referring to the market valuation of the company. It's not nothing, but it's also not quite money.
Spotify "losing $4 billion of value" doesn't mean they lost $4 billion or that $4 billion worth of business was taken away from them by cancelations.
It's referring to the market valuation of the company. It's not nothing, but it's also not quite money.
Like so many tech companies presenting as media companies, presenting themselves as a solid choice for investors is a big part of their strategy. "Line go up" = success. But the line going down is temporary until it's not.
If you've been wondering why Spotify isn't panicking or why "spending $100 million to lose $4 billion" doesn't immediately trigger a reversal, it's because they don't yet have any reason to fear their share price won't recover.
That's possible. But shareholders with enough of a stake for Spotify to listen are here for a long time, not a consistent time. If they have faith in Spotify's future, they might just buy in more, since there's currently a discount.
https://twitter.com/Qlippot/status/1487791224174129163
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