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Spotify's stock is feeling the heat.

On Monday, Spotify (SPOT - Get Report) shares were down 2.86% as investors turned more negative on its ability to compete against tech giants like Alphabet (GOOGL - Get Report) and Amazon (AMZN - Get Report) .

Late last week, Amazon announced a free, ad-supported version of Amazon Music available through Amazon's Alexa voice assistant. Prime members can listen ad-free to a catalog of two million songs and thousands of stations and playlists. Amazon also sells an $8 per month unlimited subscription that expands the available catalog to 50 million songs.

Just days earlier, Google launched a very similar offering: YouTube Music will be accessible now on Google Home devices as a free ad-supported version, while a $10 music premium subscription eliminates ads, among other features.

Given the increasing ubiquity of smart home devices -- and the fact that music is among the most popular use cases for Amazon's Echo family and Google Home -- Spotify investors could be feeling a bit spooked.

A December 2018 survey by RBC Capital Markets, for example, found that listening to music was the most common task for households that use Alexa. 

In its last earnings report in January, Spotify said that it had reached 200 million monthly active users and 96 million paid subscribers, due in part to a Google Home promotion, the company said. However, its free, ad-supported segment had been also been a particular area of success for Spotify throughout 2018, with ad-supported revenue growing 34% year-over-year in the fourth quarter of 2018.

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