Shares of Spotify (NYSE:SPOT) stock are surprisingly in the green after the digital music company announced that its CFO, Paul Vogel, would step down on March 31, 2024. Vogel joined Spotify in 2016 after previously working as a managing director at Barclays (NYSE:BCS). He took on the role of CFO in 2020.
In the meantime, Vice President of Financial Planning and Analysis Ben Kung will take on additional responsibilities while the company searches for a permanent replacement.
“Over time, we’ve come to the conclusion that Spotify is entering a new phase and needs a CFO with a different mix of experiences. As a result, we’ve decided to part ways, but I am very appreciative of the steady hand Paul has provided in supporting the expansion of our business through a global pandemic and unprecedented economic uncertainty,” said founder and CEO Daniel Ek.
Vogel’s departure announcement comes just days after Spotify revealed that it would lay off 17% of its workforce, or about 1,500 jobs. In an email to employees, Ek attributed the layoffs to hiring too many employees in 2020 and 2021, which eventually resulted in excessive costs.
“Economic growth has slowed dramatically and capital has become more expensive. Spotify is not an exception to these realities,” said Ek.
5 Investors Betting Big on SPOT Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q3, 533 13F filers disclosed a stake in SPOT stock, a decline of 24 filers compared to the prior quarter. At the same time, total shares owned by these filers increased by 3.82% to 112.3 million. 28 of these filers own SPOT in their top 10 positions.
Hedge funds, whose data is included in 13F data, were more bearish. 153 hedge funds own SPOT, a decline of seven filers compared to Q2. Additionally, total shares owned by hedge funds declined by 2.21% to 27.85 million.
With that in mind, let’s take a look at Spotify’s largest shareholders:
- Daniel Ek, CEO: 31.93 million shares. Ek’s stake is accurate as of Q4 of 2022.
- Baillie Gifford: 24.82 million shares. Baillie sold off 354,932 shares during Q3.
- Martin Lorentzon, co-founder: 21.51 million shares. Lorentzon’s stake is accurate as of Q4 of 2022.
- Morgan Stanley (NYSE:MS): 9.18 million shares. Morgan Stanley sold 164,268 shares during Q3.
- T. Rowe Price (NASDAQ:TROW): 7.82 million shares. T. Rowe acquired 1.69 million shares during Q3.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
