Spotify Technology SA (NYSE: SPOT) is trading higher Friday after the company announced a $1 billion buyback.
Repurchases of up to 10 million of the company's ordinary shares and up to the amount of $1 billion were approved and will commence beginning in the third quarter. The authorization to repurchase will expire in April 2026.
Spotify said the repurchase program will be executed with its capital allocation strategy, which will continue to prioritize aggressive investments to grow the business.
“This announcement demonstrates our confidence in Spotify’s business and the growth opportunities we see over the long term. We believe this is an attractive use of capital, and based on the strength of our balance sheet, we continue to see ample opportunity to invest and grow our business," said Paul Vogel, CFO of Spotify.
Spotify is one of the world's largest music streaming service providers, with over 150 million total listeners.
Price Action: Spotify has traded as high as $387.44 and as low as $201.67 over a 52-week period.
At last check Friday, the stock was up 5.82% at $217.02.
Photo: courtesy of Spotify.
See more from Benzinga
Click here for options trades from Benzinga
Why Snowflake's Stock Is Falling Today
Why Geovax Labs Shares Are Soaring Today
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.