Spotify Technology SA SPOT executives and board members have capitalized on the company’s remarkable stock performance in 2024, selling $1.25 billion worth of shares as the streaming giant’s market value approaches $100 billion.
What Happened: Co-founders Daniel Ek and Martin Lorentzon led the selling spree, collecting $350 million and $550 million respectively, according to U.S. Securities and Exchange Commission filings. The stock sales accelerated in November and December, involving approximately 20 company leaders.
The streaming service’s shares have nearly tripled in 2024, marking a dramatic recovery from 2022-2023 when its market capitalization fell below $20 billion. The turnaround follows successful cost-cutting measures, including a 25% workforce reduction in 2023, and price increases across multiple markets.
Key executives joining the selling wave include Chief Product and Technology Officer Gustav Söderström ($106 million), Chief Business Officer Alex Norström ($63 million), and Chief Human Resources Officer Katarina Berg ($38 million). Netflix CEO Ted Sarandos, a Spotify board member since 2016, sold $6 million in stock.
Why It Matters: JPMorgan recently named Spotify among its top tech picks for 2025, alongside Amazon.com Inc., Meta Platforms Inc., and Alphabet Inc., citing AI-driven growth potential. However, investment firm Ark Invest, led by Cathie Wood, sold approximately $4.8 million worth of Spotify shares in early December.
Price Action: Spotify closed at $460.88 on Friday, up by 1.48%. In after-hours trading, the stock slightly gained, reaching $461.06. Year-to-date, Spotify’s stock has surged 144.11%, according to data from Benzinga Pro.
Spotify has a consensus price target of $402.19, based on 32 analysts. The highest target is $560, and the lowest is $190. The most recent ratings, from Canaccord Genuity and Goldman Sachs, suggest a 13.87% upside, with an average target of $525.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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