Serious Questions Asked About The Future Of Spotify As Stock Slumps
Serious questions are being asked after Spotify moved to buy back as much as $1bn of its shares which have plunged by over 30% since July.
The loss-making Company listed in April and shortly afterwards the stock started to dive, now the Company is splashing the cash to buy back their own shares.
Shares in Spotify fell more than 7 per cent over two days last week after the company disappointed investors with its third quarter subscriber growth and offered a muted outlook for the fourth quarter.
Spotify made its debut on the public markets in April through a direct listing, as opposed to the traditional initial public offering process that is used by most companies.
But unlike other companies Spotify posted an operating loss of $9M on sales of $2.1 Billion and free cash flow of $33m for the three months to end of September.
Spotify said the buyback programme will expire on April 21, 2021.
Shares in Spotify fell 0.6 per cent in opening trade. They had been up by as much as 2.8 per cent in pre-market trading.