Spotify will institute a stock buyback program of up to 10 million of the company’s shares, to the tune of up to $1 billion, beginning in the third quarter of this year, the company announced today (Aug. 20).
According to a press release, the company’s board of directors authorized the repurchase program through April 21, 2026, and noted that the “timing and actual number of shares repurchased will depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities.”
This buyback period follows a similar program announced in November 2018, which set the same share and price ranges. That program expired on April 21, 2021.
“This announcement demonstrates our confidence in Spotify’s business and the growth opportunities we see over the long term,” Spotify’s chief financial officer Paul Vogel said in a statement. “We believe this is an attractive use of capital, and based on the strength of our balance sheet, we continue to see ample opportunity to invest and grow our business.”
Last month, Spotify released its Q2 earnings report, which showed that paid subscribers grew to 165 million around the globe and revenue climbed 23% to $2.75 billion. But the news was met with a negative reaction by stockholders, which sent the stock down 10% the day of the earnings announce. At the beginning of trading yesterday (Aug. 19), Spotify’s stock hit a 52-week low of $202.11, according to Marketwatch. But the stock price rebounded at the opening of trading today, up nearly 10% to $215.07 as of press time.
