Recent weeks have been eventful for music in the stock market. Founders and investors for Tencent Music saw the newly-floated firm’s share price soar nearly 8% on its first day of trading. But Spotify’s fortunes went in the other direction, indicating it’s going to be something less than a merry Christmas for the company’s investors and owners.
The music streaming brand’s share price fell to an all-time low of $125.55 this week as the firm’s market cap dropped past the $23bn level for the first time.
Sign Of The Times
This stock dive is in line with a broader decline in stocks for US tech companies in recent months. This is being blamed on a number of political and economic factors, including the developing trade war between the US and China. As tensions increase between the Trump administration and their Chinese counterparts, stocks in all sorts of markets have been turbulent, and tech stocks have suffered extensively from the uncertainty and volatility.
These same political and economic factors are likely to be behind Tencent Music making the decision to delay its US IPO, which had originally been scheduled for October. Tencent Music finally started trading on December 12 at $13 a share, having raised around $1.1bn after offering 82,000,000 shares.
This delay would appear to be a shrewd move, as the opening days of trading for Tencent Music have been quite the success story.