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.