Spotify opened on the New York Stock Exchange at $165.90 a share, giving the Swedish company a value of $29.5 billion. "This is a large listing, and Spotify has the advantage of a huge consumer base which it can leverage into retail investors".
Analysts' advice, however, is that companies are not to be misled by Spotify's first day on the market. The successful IPO may have made the case for more tech companies to take the direct listing route for their own stock market debuts. Unlike a traditional Initial Public Offering, Spotify conducted a direct listing, meaning no banks underwrote the offering and no price was set ahead of the debut.
Fellow streaming and media giant Netflix may provide a roadmap for Spotify's future stock performance, according to one analyst. It went public and the valuation closed at $26.5 billion.
The direct listing by Spotify was the largest on record, with Spotify now having a higher market value than Snap Inc.
For artists, particularly smaller, independent acts, this serves as a chance to enter into beneficial agreements with the service even if they are not associated with a major music label.
In another break with tradition, Ek and Lorentzon did not attend the exchange to ring the opening bell, although the NYSE building was draped in a huge Spotify banner (pictured above).
Spotify's core business is online music streaming services that allow customers to play music through the internet.
Daniel Ek, Spotify's co-founder and chief executive, added in the Times report that the manner in which they went public reflected the company's self-image as a disrupter in the industry.
Like many other "unicorn" companies, Spotify has never posted profits. Instead, we will be working on trying to build, plan, and imagine for the long term.
At the end of 2017, Spotify had 157 million monthly active users and 71 million premium subscribers.