---
title: "Spotify Stock (SPOT) Rises After Boosting Share Buyback by $1.5 Billion"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/296540422.md"
description: "Spotify (SPOT) stock rose approximately 1% in after-hours trading following the company's announcement to increase its share buyback program by $1.5 billion, bringing the total authorization to nearly $2.223 billion. The move is supported by strong financial performance, including €797 million in Q2 free cash flow and 300 million Premium subscribers. Wall Street maintains a Strong Buy consensus with an average price target of $607.04."
datetime: "2026-08-20T21:47:57.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/296540422.md)
  - [en](https://longbridge.com/en/news/296540422.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/296540422.md)
generator: "portal-rs"
---

# Spotify Stock (SPOT) Rises After Boosting Share Buyback by $1.5 Billion

Spotify (SPOT) stock gained about 1% in after-hours trading on Thursday. The move came after the digital audio streaming service provider boosted its share repurchase program again, adding another $1.5 billion to its buyback pool. With about $723 million still left from the current plan, the total authorization now rises to nearly $2.223 billion.

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The company said the pace and size of future buybacks will depend on share price, market conditions, business needs, and other investment options. Spotify also noted that the program does not force the company to buy a set number of shares and can be paused or stopped at any time.

Importantly, Spotify ended recent quarters with a solid cash position and improving free cash flow, giving it room to support a larger buyback plan. In the second quarter, SPOT recorded a free cash flow of €797 million, bringing its trailing 12-month free cash flow to €3.3 billion.

## **Spotify's Focus on Improving Performance Is Paying Off**

The company's shift from prioritizing pure user growth to focusing on the bottom line has helped improve its financial position. Spotify has been building a stronger balance sheet over the past year, aided by steady subscriber growth, rising ad revenue, and tighter cost control.

In its recent Q2 earnings report, Spotify crossed a major milestone by reaching 300 million Premium subscribers, up 9% year-over-year. Also, total monthly active users (MAUs) climbed to 777 million. Further, overall revenue grew a strong 14% year-over-year to €4.8 billion.

Looking ahead, Spotify expects continued gains from rising paid users and better margins from its long‑running efficiency push. Also, it remains focused on adding new revenue streams from audiobooks and creator tools. Further, management remains confident that the company can keep making enough cash to grow the business while still giving money back to shareholders.

## **Is SPOT a Good Stock to Buy?**

Overall, Wall Street has a Strong Buy consensus rating on Spotify stock based on 20 Buys and five Holds assigned in the past three months. The average SPOT stock price target of $607.04 indicates 13.86% upside potential.

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**