Spotify Stock Is Down 40%. Buy the Dip, or Run for the Hills?

Spotify (NYSE: SPOT) operates the world's largest music streaming platform, and it's coming off its best year ever in 2025 with a record number of users, revenue, and profit. As a result, its stock soared to a fresh all-time high, but its valuation reached an unsustainable level, which set the stage for its recent decline of over 40%. Spotify is investing heavily in advanced technologies like artificial intelligence (AI), in addition to other content types like podcasts and audiobooks, which could fuel si ...