Spotify Stock Struggles, Live Nation Rises In AM Trades

Spotify stock struggled on day two of trading Tuesday morning, but Live Nation stock appeared to be recovering from two days of declines, after a New York Times story that it was being investigated by the U.S. Department of Justice. The markets overall were down slightly by late morning.

Spotify stock fell more than 5% on Wednesday, trading as low as $140.61 by late morning. That's above the $132 reference price set by the NYSE, but well below the stock's Tuesday opening price of $165.90, when a total of 5.6 million shares changed hands in the first trade.

Tuesday's closing price of $149.95 was 9% lower than that, and after hours trading went lower, hovering around $149.  

Stock analysts appear worried about Spotify's path to profitability. Gabelli & Co's John Tinker initiated his coverage yesterday of Spotify with a "hold" rating. "Apple is growing faster than Spotify and has a different business model whereby music does not have to be profitable on a standalone basis," Tinker wrote and predicted $130 per share price for the stock this year.

Live Nation

Live Nation stock, on the other hand, appeared to be recovering from two day losses of 13%. As off 11:30 AM ET, Live Nation was trading up almost 3.7% trading at $37.96 despite a down market overall. 

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