Spotify announced that it will spend up to one billion dollars between this Friday, August 20 and April 21, 2026 to buy back its own shares.
This figure represents about 2.5 percent of Spotify’s market capitalization, valued at $ 41.06 billion and whose shares rose 5.1 percent after this news.
The announcement of the company can be quite common in the financial sector, since many other firms such as Apple, Alphabet and Microsoft have active share buyback programs.
In addition, according to experts, it is common to see some companies dedicate a fraction of their balance to the purchase of their own shares.
According to an article by TechCrunchThe goal of this is to return cash to shareholders, as buybacks, along with dividends, are some of the main ways that companies can use their wealth to reward shareholders.
At the same time, by making these types of buybacks, companies can increase the value of their individual shares.
This move can help strengthen the company’s valuation and keep investors happy. Also, Spotify will not hurt your cash disposition and will indeed remain rich in this regard.
It is also likely that, in the future, we will see other companies follow in the footsteps of the streaming and decide to part with their wealth for the benefit of shareholders.
It should be remembered that Spotify already carried out a similar repurchase process in 2018.