Spotify Stock Has Dropped 25% So Far in 2022
Spotify stock (SPOT) has lost almost 25% of its value so far in 2022. What could be the cause of the decline? Some are speculating the recent controversy with Neil Young could have something to do with it.
For those who aren't up to date on the controversy, singer/songwriter Young gave Spotify an ultimatum: remove podcaster Joe Rogan or lose him. In a since deleted letter on his website, Young explained it was "because Spotify is spreading fake information about vaccines — potentially causing death to those who believe the disinformation." In response, Spotify began removing Young's music on Wednesday (Jan. 26).
There are musicians in support of both sides. Disturbed's David Draiman praised spotify for "making the right call" and for "preserving free speech." On the other hand, Sebastian Bach slammed artists who side with Rogan over Young, saying, "Imagine calling yourself a rocker yet siding with some dude who has a podcast over Neil Young."
Joni Mitchell is the latest to chime in on the controversy. The folk musician removed her catalog off of the platform. “Irresponsible people are spreading lies that are costing people their lives,” Mitchell says via her website. “I stand in solidarity with Neil Young and the global scientific and medical communities on this issue.” The hashtags #DeleteSpotify and #CancelSpotify also began trending on Twitter.
According to Forbes, Spotify's investors are becoming worried about the service's standings among the controversy, especially if other artists follow in Young and Mitchell's footsteps. All in all, it doesn't look good for Spotify stock, which has already dropped 45% in value in the past year.
It should be noted that the stock market as a whole has been down, with stocks "swinging from losses to gains" on Friday (Jan. 28), according to Barron's.