Spotify Co-founder Daniel Ek Cashes Out More Spotify Stock, Shifts Focus to Tech and Climate Startups

Author: Anusuya Lahiri | April 29, 2024 11:00am

Daniel Ek, the co-founder of Spotify Technology SA (NYSE:SPOT), has recently sold 650,000 company shares through two transactions, marking a significant increase in stock sales compared to previous years. 

The series of sales, valued at about $179 million, represents Ek’s strategic financial planning despite still holding a 7% stake in Spotify, a significant component of his $4.4 billion net worth. 

Spotify’s stock has risen significantly, increasing by 267% since late 2022, according to Bloomberg report. 

Ek’s move aligns with broader trends of tech billionaires like Michael Dell and Jeff Bezos reducing their stakes after substantial share price increases.

Outside his role at Spotify, Ek also diversifies his investments into fields like artificial intelligence, life sciences, and climate technology. He aims to invest around $1 billion in European startups.

In April, Spotify reported fiscal first-quarter 2024 revenue of $3.95 billion, up 20% year-on-year, above the consensus of $3.85 billion. EPS of $1.05 beat the consensus of $0.70. 

Analysts projected accelerated revenue growth in 2024, supported by balanced growth across Premium Subscribers as it benefits from the shift from transaction-based to access-based streaming models. 

Analysts expressed confidence in Spotify’s ability to ramp up revenue growth and significantly improve profitability, maintaining long-term solid pricing power. 

Investors can gain exposure to Spotify via Global X Social Media ETF (NASDAQ:SOCL) and ProShares On-Demand ETF (NYSE:OND).

SPOT price action: Spotify shares traded lower by 1.70% at $284.68 at the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Wikimedia Commons

Posted In: OND SOCL SPOT