Spotify's Stock Price Slide Has Nothing to Do With Joni Mitchell or Neil Young
It Started Back on Jan 11th
Spotify has seen its stock price sliding since Jan 11th. The media’s attempt to make it seem like Neil Young and Joni Mitchell really affected their stock price never made sense; how many people, even those who are old enough to have enjoyed their music when it came out, listen to those artists on Spotify? How many would leave Spotify because it no longer carried those artists? No sane person could believe that those two artists could meaningfully move Spotify’s stock price.
This stock market correction has hit tech stocks harder than others---likely because they are unusually reliant on low interest rates and because they tend to "out bull and out bear" the market generally. Furthermore, their ability to produce a large payoff in a low return environment becomes less attractive when bonds offer a better return. Or, another way to think about it, the present value of those future windfalls is lower in a higher interest rate environment: The time value of money is higher in a higher interest rate environment—and so people are less willing to wait for tech stocks to finish their elaborate business plans; investors want returns sooner. Spotify as a tech stock is caught up in that correction. Their stock market price slide is a byproduct of a general market trend that has nothing, nothing to with Rogan.