Spotify Co-founder Daniel Ek Cashes Out More Spotify Stock, Shifts Focus to Tech and Climate Startups
Portfolio Pulse from Anusuya Lahiri
Daniel Ek, Spotify's co-founder, sold 650,000 shares for about $179 million, still holding a 7% stake. Spotify's stock has risen 267% since late 2022. Ek plans to invest $1 billion in European tech and climate startups. Spotify reported a Q1 2024 revenue of $3.95 billion, a 20% increase year-on-year, with an EPS of $1.05, beating consensus. Analysts are optimistic about Spotify's revenue growth and profitability. Spotify shares are part of the Global X Social Media ETF (SOCL) and ProShares On-Demand ETF (OND).
April 29, 2024 | 3:00 pm
News sentiment analysis
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POSITIVE IMPACT
The ProShares On-Demand ETF (OND), which includes Spotify, may benefit from Spotify's positive Q1 2024 earnings report and optimistic revenue growth projections.
Spotify's positive earnings and growth outlook serve as beneficial factors for OND, potentially attracting more investors to the ETF and positively affecting its stock price.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Spotify's strong Q1 2024 performance and positive growth outlook may positively influence the Global X Social Media ETF (SOCL), which includes Spotify as part of its holdings.
Given Spotify's inclusion in SOCL and its strong financial performance, the ETF could see a positive impact as investors may view it as a more attractive investment option, reflecting positively on its price.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Daniel Ek sold 650,000 Spotify shares, retaining a 7% stake. Spotify's Q1 2024 revenue rose to $3.95 billion, with an EPS of $1.05, indicating strong financial performance and market confidence.
Ek's share sale, despite being significant, shows his continued confidence in Spotify by retaining a 7% stake. The strong Q1 2024 financial performance and positive analyst outlook likely offset any negative impact from the share sale, suggesting a potential positive short-term impact on SPOT's stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100