Spotify opened on the New York Stock Exchange at $165.90, giving the company a market value of $29.5 billion. The first trade didn't happen until 12:45pm Eastern. This is halfway through the trading day, and a record for the latest opening time for a public debut. Instead, the event known as a "direct listing," is a collection of transactions from existing shareholders (like employees and investors) selling shares directly to stock market investors. It took a while for the market makers to sort this out.
Spotify, the world's top selling music streaming service, expects revenue to grow 20-30 percent this year as currency swings slow the pace from 2017. As David Pollard reports, the Swedish company released the figures as it gears up for a highly anticipated stock market listing next week. Spotify has helped the U.S. music industry stem its growth slide. Now we are going to find out how it plays on Wall Street. The music streaming service, which launched in the U.S. in 2011, became public Tuesday.
Spotify's opening act on Wall Street struck a chord with investors betting the unprofitable company's trend-setting music streaming service will maintain its early lead over Apple and other powerful challengers. After several hours of anticipation Tuesday morning, Spotify's shares traded as high as $169 in their stock market debut before falling back slightly. The stock closed at $149.01 -- well above its previous high of $132.50 in deals worked out during Spotify's 12-year history as a privately held company. The stock market's warm welcome left Spotify with a market value of about $27 billion, according to FactSet. By comparison, internet radio station Pandora Media's market value stands at $1.2 billion nearly seven years after that company went public.
Spotify shares fell nearly $17 on their first trading day but still surpassed expectations set by financial experts. As of 4pm ET, the stock sat at $149.01-a-share. Although that's a drop from when the stock opened in the morning at $165-a-share, the market value of the company rests at $26.5billion, according to The Wall Street Journal. The Swedish music streaming service has value well above other tech firms such as Twitter. In an unconventional approach, early investors sold their existing holdings of Spotify instead of issuing new shares, giving early backers the opportunity to cash in on its growth.
Spotify picked up more fans on Wall Street on Tuesday as investors gave the unprofitable company a warm welcome in its stock market debut. After several hours of anticipation, Spotify's shares traded as high as $169 before falling back slightly. By the early afternoon, the stock was still hovering around $150 -- well above its previous high of $132.50 in deals worked out during Spotify's 12-year history as a privately held company. The stock market's rousing reception left Spotify with a market value of about $28 billion, according to FactSet. By comparison, internet radio station Pandora Media's market value stands at $1.2 billion nearly seven years after that company went public.