Spotify shares drop over 5% pre-market, trading at $689.63; company announces leadership changes

Spotify shares drop over 5% pre-market, trading at $689.63; company announces leadership changes

In the pre-market session on September 12, 2025, Spotify (SPOT) shares fell by over 5%, trading at $689.63. This significant drop comes as the company announced several leadership changes. The stock's performance has been closely watched by market participants, especially following Spotify's recent financial gains and upcoming earnings release.

Spotify's shares have been volatile in recent months, with the stock gaining 5.08% in the past month. However, the company's latest close session saw a 1.67% increase, with the stock exceeding the S&P 500's 0.26% gain. The technology-centric Nasdaq also saw a 0.48% increase, while the Dow registered a 0.15% gain .

Investors will be closely following Spotify's earnings announcement scheduled for November 4, 2025. The company is projected to report earnings of $1.96 per share, representing year-over-year growth of 23.27%. Revenue is expected to reach $4.88 billion, a 11.37% escalation from the year-ago quarter .

The company's Zacks Rank remains at #3 (Hold), indicating a neutral outlook. However, the Zacks Consensus Estimates project full-year earnings of $5.77 per share and revenue of $19.9 billion, changes of -3.03% and +17.4%, respectively, from the prior year .

Spotify's stock is currently trading with a Forward P/E ratio of 124.18, denoting a premium relative to the industry average Forward P/E of 29.71. The company's PEG ratio stands at 3.08, indicating a higher valuation compared to the industry average of 2.27 .

The leadership changes announced by Spotify include the appointment of Pamela R. Butcher as a Class C director, effective April 3, 2025. Butcher brings extensive chemical industry experience, having served in various leadership roles at Pilot Chemical Corp. and Dow Chemical Company .

These changes come as Spotify continues to navigate the evolving landscape of the music streaming industry and the broader technology sector. Investors should keep an eye on the company's financial performance and leadership dynamics as they could significantly impact the stock's future trajectory.