Spotify Technology shares opened at $165.90, up almost 26% from a reference price of $132 set by the NYSE late on Monday. It's said that Spotify chose the direct listing method to help ensure that employees and longtime shareholders could sell stock on day one if they wanted to. So while tomorrow puts us on a bigger stage, it doesn't change who we are, what we are about, or how we operate. Shares of Spotify ended up 12.9 percent at US$149.01 on their first day of trade, valuing the world's largest streaming music service at US$26.5 billion.
The shares quickly wobbled in their first hour of trading, though remain well above the NYSE's reference price of $132. Sony Music provides its artists' music to the Swedish company. However, reports suggest that Apple Music isn't far behind Spotify in the United States and is expected to surpass 36 million paid subscribers globally by the summer. This is significantly ahead of Apple, Spotify's closest competitor in the music streaming market, who itself has comparably just 36mn subscribers.
Spotify's IPO made for an exciting day on Wall Street. However, Michael Carvin, Chief Executive of personal finance company SmartAsset, pointed out that this might be an exceptional case and warned other companies from being carried away by Spotify's success.
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Spotify CEO Daniel Ek declined an invitation to ring the opening bell at NYSE.
The performance left Spotify's market value among the 10 highest ever recorded by a technology company following their first day of USA trading, according to Dealogic. "Spotify has never been a normal kind of company".
Spotify (spot) already has two revenue sources, collecting advertising sales from its free service and subscription revenue from its premium service.
Now, the service has 71 million paying customers, making it the most successful music streaming company to date, surpassing Apple Music, Google Play Music, and Tidal among others.