Spotify unexpectedly announced a stock repurchase program

Spotify (SPOT.US) stock surges more than 5% after the streaming company announced that its board approved a $1 billion stock buyback which will begin in the third quarter. “This announcement demonstrates our confidence in Spotify’s business and the growth opportunities we see over the long term,” said Paul Vogel, Chief Financial Officer at Spotify. “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.” Spotify said the repurchases can be made from time to time using a variety of methods, including open market exercises. The authorization to repurchase will expire on April 21, 2026. The timing and actual number of shares repurchased will depend on a variety of factors, including price, general business and market conditions, the company said.

Spotify (SPOT.US) stock recently bounced off the major support at $200.00 and today price broke above the downward trendline and is currently testing a major resistance zone around $215.50 which is marked by the upper limit of the 1:1 structure and 50 SMA (green line). Should a break higher occur, then the upward move may accelerate towards the next resistance at $237.50. Source: xStation5