Spotify Swiss or Swedish? Whatevs says New York flies the wrong flag

The Swedish company's shares opened at $165.90 (£118), significantly higher than the $132 guide price set by the stock exchange earlier this week, before dropping down to $149.01.

Spotify has been compared to streaming entertainment service Netflix for its growth potential.

"It's a fair market price. This is a large listing, and Spotify has the advantage of a huge consumer base which it can leverage into retail investors".


For context that's around the same figures generated by Snap Inc's controversial IPO, which saw the social media company valued at $28 billion (£23 billion) at the close of its first day of trading a year ago.

Despite reporting a loss of $1.5 billion previous year in the wake of profitability challenges, Ek remains optimistic about the future of Spotify.

Pop superstar Taylor Swift, who once railed that Spotify was short-changing artists and boycotted the service, recently debuted a video as an exclusive to the platform. But it still does not make a profit and faces intense competition from Apple and others.


"Investors are right to have some reservations".

Though Spotify has not hired traditional underwriters - a move that will save it millions of dollars in fees - it has hired Citadel Securities as a market maker to set the opening price on the NYSE, with help from Morgan Stanley.

By comparison, Apple's almost 3-year-old music streaming service has 38 million subscribers. Apple Music, the closest rival, in comparison has about 46 million subscribers. Alphabet Inc's Google does not release paid subscriber numbers for Google Play Music. It reported revenue of about $5 billion in 2017, marking a 39% increase from the previous year.


Amid Spotify's methodical wait to list, MIDiA Research managing director Mark Mulligan called Tuesday "arguably the most anticipated day in the history of digital music". This is where the company doesn't issue new shares or seek to raise money through the process of going public, instead it gives existing shareholders the option to sell their shares to the public. More than 91% of the proposed 178 million shares are traded, which is a much higher percentage than the original stock market's initial offering.

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