FIN 3210-02OL Week 6 Discussion

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Finance

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Jan 9, 2024

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Piper Barnhart FIN 3210-020L Week 6 Discussion In an article from Digital Music News entitled, “Top Investment Firm Says Spotify’s ‘Darkest Days Are Ahead’ ‘Competition Is Fierce, Margins Thin’,” it speaks on how Spotify’s rebound in stock price in the past year does not necessarily mean there will continue to be future success for the company. There is a belief that with some of the current economic downturn as well as how crowded to online music market is that there may not be as much room for Spotify’s growth as they may think. This information would be useful for the CFO of a company because they would need to understand how the market is changing and not become too comfortable with their rise in stock price. Understanding economic conditions is very important for any CFO. This can relate in some mays to the Behavioral Finance Theory. Although in a perfect market when Spotify’s stock price rises and the company seems to be growing in popularity, Behavioral Finance Theory shows how imperfections in the market can change that sense of perfectness. My question for the class would be: As CFO of this company how might I combat or change my sources of financing to make up for this possible economic downturn?
References King, A. (2023, October 3). Top investment firm says Spotify’s “darkest days are ahead.” Digital Music News. https://www.digitalmusicnews.com/2023/10/01/spotify-stock-darkest-days- ahead-2023-analyst-report/
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