The stock market surged as Spotify’s shares rose by over 11% following their latest earnings report. Co-founder and major shareholder Martin Lorentzon also made headlines by selling shares worth $384 million, equivalent to 4.2 billion Swedish kronor.
Peter Benson, the responsible publisher at Placeras, expressed his satisfaction with the report, highlighting Spotify’s impressive gross margin increase. Benson underscored the company’s evolution from being perceived as a middleman with slim margins to a thriving entity in the music industry.
Despite Lorentzon’s significant divestment, Benson remains steadfast in his belief in Spotify’s long-term potential under the leadership of Daniel Ek. However, several top executives seized the opportunity to reduce their holdings in the company, as evidenced by filings with the US Securities and Exchange Commission (SEC).
The insider sales amounted to a total of $587 million, in addition to Lorentzon’s $4.2 billion transaction. Notable executives who sold shares include Alex Norström, Barry McArthy, William McArthy, Eve Mothner, Mehrotra Shishir, Benjamin Kung, and Heidi O’Neill.
Lorentzon, who still retains a stake of over 10% in Spotify, continues to be a key figure in the company’s trajectory. The combination of robust financial performance and strategic insider actions underscores the dynamic landscape of the music streaming industry and Spotify’s position within it.