The factors in favour of a drop in the Spotify share price:
Firstly, Spotify is notorious for paying artists at low prices because its basic service is free, which could be a problem in the long run if its competitors offer higher remuneration.
Secondly, although Spotify's library is very comprehensive, it remains limited due to artists splitting up their catalogues.
It should also be noted that Spotify's business model of pushing users to take out a subscription by reducing access to the free service may lead to a slowdown in the growth of users in the coming years.
Of course, fierce competition from the industry and especially from its growing competitors such as Apple, Amazon and Google could weigh on Spotify's reputation and cause it to lose its number one position in the industry, especially as these companies also enjoy strong popularity in the eyes of the public.
The rise in illegal downloads, despite the procedures put in place to curb this phenomenon, is also a major handicap for companies in this sector who could see their subscriptions decline over time.
Finally, it should be noted that Spotify is not yet making a profit. Reducing its losses and generating new profits is therefore one of the major challenges for the coming years.
To sum up, it's interesting to compare the strengths and weaknesses of the Spotify group in order to determine the chances of growth for the group and therefore for its stock on the stock market.