Spotify downgraded at Monness Crespi with ‘darkest days’ of downturn ahead

As previously reported, Monness Crespi downgraded Spotify to Neutral from Buy ahead of the company’s scheduled report of its Q3 results on October 24. The stock has “enjoyed a strong rebound this year,” rising 95%, notes the analyst, who cites this outperformance and “mounting concerns” about the potential collateral damage from the current downturn for stepping to the sidelines. Competition is “fierce,” margins are “thin,” and “we believe the darkest days of this downturn are ahead of us,” the analyst tells investors.