Research

Spotify On Wall Street: Opens At $165.90, Closes Under $150

Spotify On Wall Street: Opens At $165.90, Closes Under $150”

After receiving a reference price of $US132 the day prior to the offering, the stock officially began trading at $US165.90 per share at 12:44 p.m. ET Tuesday, netting the freshly public company a valuation of about $US30 billion. Direct listings are typically used for smaller launches, such as for a company emerging from bankruptcy or a public company's spinoff listing shares. That puts the company value at $23.5 billion, and is on target with what CNBC reported last month when shares were traded on private markets were for as high as $132.50 a share.

According to Spotify CEO Daniel Ek, Spotify's IPO doesn't need to be a "splash".

Ek explained his position in a company blog post published yesterday.

"Nothing ever happens in a straight line - the past 10 years have certainly taught me that".

Ek, in an effort to keep the IPO somewhat low-key, was not at the NYSE and did not ring the opening bell.

The company also said it aimed to boost its subscriber numbers by 30 to 36 percent this year.

But Spotify faces rising competition not just from Apple but from retail behemoth Amazon, which has boasted of quick growth for its new service.

AG Sessions Says No Second Special Counsel - For Now, Anyway
Nonetheless, his decision not to appoint a special counsel, at least for now, is nearly certain to disappoint Republicans. Attorney Huber, given his reputation, will conduct an independent and thorough investigation.

Oil briefly hits $71, with US supply, Middle East in focus
Portfolio managers hold 11.7 long positions for every short one, the second-highest ratio on record after 11.9 on January 30. The possibility of a full-blown trade war had weighed on the energy complex on fears that it could harm oil demand.

'Yeddyurappa Government Most Corrupt': Amit Shah Scores Self Goal
On a day high on faux pas from the BJP, Rahul Gandhi took to Twitter to mock the two Amits of BJP - Shah and Malviya. Rawat was addressing a press conference to announce the schedule for Karnataka polls but had not announced the date.

The growth was nearly entirely attributable to the public's embrace of streaming, with subscriptions to paid platforms such as Spotify, Apple Music, Tidal and the new service of retail giant Amazon growing 56 percent to 35.3 million users. With the United States also set to tighten its H1B policies which will make it hard for the tech companies, the recipe is complete for the companies to feel the pinch and this has been placing the pressure on the stock markets.

Spotify declined to comment for this story citing the SEC mandated "quiet period", which restricts companies from making certain public statements during the going public process.

Unlike Netflix, Spotify still isn't profitable, having lost more than 2.4 billion euros ($3 billion) since it started more than a decade ago. "Spotify is a "cool" brand", said eMarketer principal analyst Paul Verna.

Spotify has helped change the way much of the world listens to music by popularizing streaming - unlimited, on-demand songs online.

A Swedish-founded company, Spotify is taking a very unique approach to trading on the Stock Exchange, by trading shares for whatever investors feel they are worth, rather than selling them for fixed price in order to instigate a financial windfall.

By foregoing hiring investment banks as underwriters or holding traditional promotional events with institutional investors, this could lead to extreme trading volatility when formal trading begins, analysts say. The company is using a so-called direct-listing process. That could make it even more hard for investors to settle on the right price for Spotify's stock, they say.

"Our focus isn't on the initial splash". Spotify "will be working on trying to build, plan, and imagine for the long term", he writes, adding that he's excited for the future of his company.



Like this

Latest


04 April 2018
India manufacturing growth slows again in March
Whatever higher production occurred is mainly linked to new order growth and favourable demand conditions, the survey pointed out. Jobs growth was signalled for the forty-third straight month, although the pace of increase eased to a seven-month low.

04 April 2018
Disney could buy Sky News to ease concerns over Fox's Sky takeover
Critics have voiced concern that the deal would give the Murdoch family, which controls Fox, too much influence over Sky News. Indeed, popular British news outlets owned by the Murdoch family include newspapers the Sun , the Time and the Sunday Times.

04 April 2018
United Nations urges Israel to 'reconsider' canceled migrant deal
On Tuesday, however, activists took to the streets of Tel Aviv once again holding signs saying "Stop the deportations! ". Critics called the deportation plan unethical and a stain on Israel's image as a refuge for Jewish migrants.

04 April 2018
Moto G6, Moto G6 Plus, Moto G6 Play official posters emerge online
Talking about the pricing first, the listing reveals that both the Moto G6 and G6 Play are going to be budget segment phones. It mentioned an 8MP selfie camera with an ultra-wide angle but didn't mention megapixels for the dual rear-facing cameras.

03 April 2018
Teen who fell into sewage pipe rescued after frantic search
The workers were placing a surveillance camera in a maintenance hatch as rescue teams scoured miles of pipe when they found him. They narrowed the search area further after noticing the hand markings on the closed-circuit camera feed from inside a pipe.

30 March 2018
AUDIO: Kansas Jayhawks' First Full Day In San Antonio
Both teams play pretty well and yet there were some things each team did that they don't normally do and still stayed in the game. The Midwest Region champion Jayhawks will take on the top seed out of the East Region, Villanova , at 7:49 p.m. on Saturday.

30 March 2018
Donald Trump visits Richfield Training Facility, discusses infrastructure plan
Trump pointed at Hicks, waved to the cameras, and gave Hicks a handshake and a kiss on the cheek before heading to Marine One. Trump says: "We will transform our roads and bridges from a source of endless frustration into a source of incredible pride".

29 March 2018
Ex-Trump Lawyer Reportedly Discussed POTUS Pardoning Flynn and Manafort
However, he added that Dowd represented Trump in his personal capacity, as opposed to Cobb, who represents the White House. In a statement to the Times , Dowd denied the report. "Period", he said, according to the Times .

29 March 2018
Body Found in Nevada County Identified as Missing Actress Adea Shabani
Discrepancies in Spotz's alibi raised warning bells but he disappeared before police could track him down for further questioning. As part of the investigation, detectives could not corroborate details of Spotz's account and continued to look into his story.

28 March 2018
Catalan police break up pro-independence motorway protest
A spokeswoman for the German prosecutor's office said it would "probably not come this week" ahead of the four-day Easter holiday. A court in the German town of Neumuenster ordered Puigdemont to remain in custody pending possible extradition to Spain.



Recommended