Spotify’s opening number seemed to be music to the market’s ears…at least at first. The streaming company made its debut on the New York Stock Exchange Tuesday afternoon at more than $165 a pop, pegging its valuation at roughly $29.5 billion. Over the course of the day, though, that price slipped to about $149, down about 12 percent from the highs of the day, but still well above the $132 a share reference price. Spotify’s unconventional choice of a direct listing, instead of a traditional IPO, had investors and experts bracing for a roller-coaster ride on Tuesday. “I thought we were going to see a lot of spikes up and down and up and down,” said Dan Primack, business reporter at Axios. But “it hasn’t been all over the place.” This smoother-than-expected listing raises the question of whether more companies will follow in Spotify’s footsteps in the future. “It’s not the right path for all,” Stacey Cunningham, COO of the New York Stock Exchange, told Cheddar before the stock started trading. “There are some unique factors for [Spotify]. “They don’t need to raise capital, so going through the IPO process isn’t something that was important to them.” Spotify was much more interested in “providing that liquidity event for their shareholders...to have a currency...to do additional M&A deals going forward,” explained Cunningham. So what’s in store for Spotify’s future? Fam Mirza, one of the company’s earlier investors, told Cheddar he wouldn’t sell his shares in the listing, because he has faith in where the company is headed. “They’re so amazing at entering new markets...They can still scale it, and then they get to those bottom line revenues.” Mirza also doesn’t consider Apple, even as it gains ground in the space, as a real threat. After all, he pointed out, the tech giant has had plenty of opportunity to overtake it. “Everybody has an iPhone. So as soon as Apple launched Apple Music...why hasn’t every single person who has an iPhone signed on to Apple Music?” For the full interview, [click here](https://cheddar.com/videos/spotifys-unique-relationship-with-wall-street).

Share:
More In Technology
Markets Plunge On Hotter-Than-Expected Inflation Data
U.S. markets opened sharply lower on Friday on hotter-than-expected inflation data. The May CPI showed an 8.6% jump in consumer prices year-over-year, higher the expected 8.3%. Mark Howard, Senior Multi-Asset Specialist at BNP Paribas joined Cheddar's Opening Bell to discuss.
U.S. Stocks Close at Session Lows Following High May Inflation Data
U.S. stocks closed Friday at session lows after May CPI data showed inflation in the U.S. has not peaked and is still rising rapidly. For the week, the S&P fell 5.06%, the Dow lost 4.58%, and the Nasdaq dropped 5.60%, marking the worst week since January for all three major indexes. Mike Zigmont, Head of Trading and Research at Harvest Volatility Management, joins Cheddar News' Closing Bell to discuss.
Tesla Files Proposal a 3-for-1 Stock Split
The electric vehicle maker filed a proposal for a three-for-one stock split, increasing the accessibility of shares for investors for a stock trading at around $700 a share. The move comes not long after tech giant Amazon announced a 20-for-one split. The number of authorized shares rises from two billion to six billion. It was also revealed that board member Larry Ellison does not intend to stand for reelection as it pertains to Tesla.
Biden Proposes New Rule to Add 500,000 EV Chargers Nationwide
President Biden proposed a new rule that would add 500,000 chargers for electric vehicles nationwide. The proposal comes amid the rapid shift to EVs with dozens of automakers announcing plans for all-electric fleets within the next decade. But with the new surge will the U.S. have the proper infrastructure to keep up? Scott Painter, founder and CEO of Autonomy.com joined Cheddar's Opening Bell to discuss. "I really think the idea of standardization is a big deal. Standardization certainly makes it much better for everybody to be able to get a charge when they need one," he said.
Load More