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
Disney Q3 Earnings Dragged Down by Slowing Subscriber Growth
Mike Proulx, VP and research director at Forrester, joined Cheddar to talk all about Disney's lackluster Q3 earnings after the company reported a slowdown in Disney+ subscriber growth. Proulx discussed a Forrester study that found 45 percent of U.S. adults subscribed to streaming services because of the pandemic but 26 percent had plans to cancel a service over the next two years. "We're always going to look at growth, and we also have to look at engagement," he said. "But both of those metrics come down to having either original or exclusive content that will offer value to the subscriber base."
Rivian's Stellar IPO a Good Sign for Growing EV Market
Anthony Sassine, a senior investment strategist at KraneShares, joined Cheddar to discuss Rivian's historic public debut after the company achieved an $86 billion valuation — more than either Ford or GM. He said the big IPO was a great opportunity for the U.S. to position itself as a leader in the EV space after lagging behind Europe and China. "When you have certainty for growth for the next 10 to 15 years, investors are willing to pay more," he said. "So, this is a massive opportunity for the whole space."
DoorDash to Acquire Food Delivery Company Wolt
Food delivery giant DoorDash is acquiring European food delivery company Wolt. The all-stock deal is valued at $8.1 billion and is expected to close in the first half of 2022. The companies say they share a mission to build a global delivery platform. Gerber Kawasaki investment advisor Eva Agi joins Cheddar News' Closing Bell to discuss what the deal means for Doordash, as well as its customers and investors.
Load More