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).
On the back of a groundbreaking partnership with data heavyweights Deloitte and Nielsen, cannabis industry intelligence company Headset on Monday announced the launch of its real time analytics tool in the province of Alberta, marking its official debut in the Canadian market. Stakeholders anticipate the data Headset Insights generates ー first in Alberta, and eventually across all of Canada ー will serve as a road map for companies outside of cannabis looking to penetrate the industry, and for Canadian cannabis companies as the market grows more diverse and competitive.
Security startup Openpath announces office tech that will allow workers to report intruders, active shooters, or other threats directly from their mobile devices and send an emergency alert directly to an office's physical security infrastructure.
Gravy Analytics, a location-based marketing technology company, analyzed the smartphone data of people who attended the 111 solo Democratic presidential candidate events held in June and July.
Shares of Lyft ($LYFT) popped more than 3 percent Monday morning after an analyst upgraded the company, citing higher prices as a path to profitability for the ride-hail company.
From Wall Street to Silicon Valley, these are the top stories that moved markets and had investors, business leaders, and entrepreneurs talking this week on Cheddar.
These are the headlines you Need 2 Know for Friday, Aug. 23, 2019.
After hearing complaints that there wasn't enough quality inventory from her own homebuying clients, Sandra Heddon started a pre-designed, sustainable home company to fill the gap. Heddon, who is the co-founder and owner of Modern Catskills, joins Cheddar to discuss how she launched her business.
The Cupertino-based tech giant may go with a major overhaul of the next iPhone with new camera tech and faster processors, but no 5G, according to a report.
These are the headlines you Need 2 Know for Thursday, Aug. 22, 2019.
TuSimple, the autonomous truck startup, isn't aiming to replace human drivers after partnering with UPS and the U.S. Postal Service, according to chief product officer Chuck Price. Instead, it hopes to help cover a nationwide driver shortage.
