Spotify is worth $7.4 billion less after the company announced on Tuesday (Sept. 30) that CEO Daniel Ek will become executive chairman and two longtime Spotify executives will become co-CEOs.

News that current co-presidents Alex Norström and Gustav Söderström will share leadership duties for the music streaming giant sent Spotify’s shares down 5.0% to $680.50 for the week ended Oct. 3, lowering its market capitalization to $139.3 billion. Norström and Söderström, who are already responsible for Spotify’s strategic and operational efforts, will report to Ek and are expected to join the company’s board. 

Analysts were upbeat about Norström and Söderström, however, noting the executives’ experience and the company’s strong performance as the duo has taken on greater responsibilities in recent years. CFRA, which has a $790 price target on Spotify, called Tuesday’s price pullback “a buying opportunity.”

Spotify’s share price has fallen 7.4% over the last two weeks and now stands more than $100 off its all-time high of $785.00 set in June. Even so, the company’s most recent earnings results provided more of the growth that investors have become accustomed to seeing. In the second quarter, the company’s total revenue grew 15% year-over-year to $4.9 billion, and subscribers rose to 276 million. Spotify will release third-quarter earnings on Nov. 4. 

Before Spotify’s announcement on Tuesday, Goldman Sachs downgraded the company’s stock to a “neutral” rating, saying much of its growth potential is already priced into the share price, while J.P. Morgan raised its price target to $805 from $740. Also, Argus initiated coverage with a $845 price target and a “buy” rating.

Spotify’s decline dragged down the 19-company Billboard Global Music Index (BGMI), which fell 2.6% to 2,956.39. The index was evenly split, with nine stocks gaining value and nine losing value. One stock, Cumulus Media, was unchanged.  

The week’s greatest gainer was Sphere Entertainment Co., which rose 6.7% to $62.97 as investors continued to react positively to the success of The Wizard of Oz. The company behind Las Vegas’s Sphere venue set a new all-time high of $67.97 on Friday (Oct. 3) and has gained 57.9% in the last seven weeks.

iHeartMedia rose 5.9% to $2.87, bringing its year-to-date gain to 34.7%. Universal Music Group gained 4.0% to 24.97 euros ($29.32). SiriusXM improved 2.6% to $23.28. 

Elsewhere, Warner Music Group rose 1.7% to $33.86. Bank of America raised its price target for WMG’s stock to $36 from $33, while UBS reiterated its “buy” rating and $40 price target on WMG shares, citing expected benefits from the way digital platforms pay royalties. 

A few other large companies joined Spotify in the “losers” column. SM Entertainment dipped 3.5%, adding to its 13.9% decline in the previous week. The two Chinese music streamers also lost value: Tencent Music Entertainment was down 3.1% and Netease Cloud Music fell 2.6%. 

Live Nation dropped 3.4% to $156.32 and has dropped 10.0% over the last four weeks. On Thursday (Oct. 2), Goldman Sachs increased its price target to $170 from $168 and maintained its “buy” rating. Live Nation was sued by the Federal Trade Commission on Sept. 18 for allegedly allowing ticket brokers to break its rules and engaging in “systemic unfair and deceptive practices.”

Music streamer LiveOne dropped 11.2% to $4.28. The company announced Wednesday (Oct. 1) in a letter to investors that it had completed a $45 million restructuring plan. LiveOne also said that it reduced its workforce to 95 employees from over 300, using AI “to drive efficiencies.” 

Markets were up this week as investors overlooked the U.S. federal government shutdown and news that ADP said payrolls at private employers declined by 32,000 jobs in September. In the U.S., the Nasdaq rose 1.3% to 22,780.51 and the S&P 500 gained 1.1% to 6,715.79. Both the Nasdaq and S&P 500 — as well as benchmark indexes the Dow Jones Industrial Average and the Russell 2000 — hit all-time highs earlier in Friday’s trading session. In the U.K., the FTSE 100 rose 2.2% to 9,491.25. South Korea’s KOSPI composite index jumped 4.8% to 3,549.21. China’s Shanghai Composite Index gained 1.4% to 3,882.78.