Spotify CEO Buys $50M in Stock as Its Share Price Plumbs Record Lows
Spotify CEO Daniel Ek casts the purchase as a vote of confidence in the company.
- Three Folio Eddie award wins: 2018 science & technology writing (Cartoon bunnies are hacking your brain), 2021 analysis (Deepfakes' election threat isn't what you'd think) and 2022 culture article (Apple's CODA Takes You Into an Inner World of Sign)
Spotify CEO Daniel Ek said Friday that he bought $50 million worth of Spotify shares, framing his purchase as a vote of confidence in the company he founded as its share price hits record lows.
Spotify shares have been closing lately at some of their lowest prices since the company went public in 2018. The stock closed Thursday at $105.59 after closing as low as $96.67 last week.
"I've always been vocal about my strong belief in Spotify and what we are building," Ek said in a tweet disclosing the purchase. "I believe our best days are ahead."
As streaming has surged to become the most common way people listen to tunes, Spotify has emerged as the dominant music service. But even though the cultural shift has made huge troves of music more accessible and affordable for millions of listeners like you, the economics of music streaming are still a lean business. Overall, Spotify has been keeping its growth on track and has invested aggressively in podcasting as a way to fatten up its business, but investors lately have been questioning whether that's enough for Spotify to book meaningful, lasting profits.
Read more: Best Streaming Music Service
