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).
This year marked the first voyage for Cheddar's weekly series Cheddar Rides, covering the changes happening in transportation and the future of getting from here to there. To celebrate the last episode of its inaugural year, Rides is looking at the road ahead.
What started with a joke on Twitter two years ago finally became a reality on Tuesday, as The Boring Company unveiled its first tunnel to the public under the SpaceX headquarters in Hawthorne, Calif. The big reveal of the 1.14-mile-long tunnel reflected both Musk's eccentric nature and the glitz and glam of Los Angeles, living up to the billionaire's promise that the event would be "more than a tunnel opening." Cheddar's Alyssa Julya Smith got a test ride in the first section of tunnel underneath L.A.
Facebook is doing damage control again after a New York Times report claims the company gave big tech companies such as Amazon and Microsoft more access to user data than previously disclosed. Plus, all eyes are on the Federal Reserve today, as the central bank is poised to raise interest rates for the fourth time this year. And Big Sean tells Cheddar what motivates him to give back to his community.
Actor Alfonso Ribeiro's case against Epic Games for its use of "the Carlton" dance in "Fortnite" might come down to a jury's sympathy, rather than copyright technicalities, intellectual property lawyer Gaston Kroub told Cheddar on Tuesday. "Could a sympathetic jury decide that these \[artists\] deserve something from 'Fortnite'? That's something that remains to be seen," said Kroub, a partner at Kroub, Silbersher & Kolmykov.
If you’re looking to make a move in 2019, you could do worse than some of the cities below. Each one is using technology ー IoT, machine learning, data analysis, autonomy, A.I. ー to remake the way its citizens interact with their surroundings. But a smart city is more than just innovative technology, as Mike Barlow and Cornelia Levy-Bencheton, authors of "Smart Cities, Smart Future," told Cheddar. It's about improving lives in concrete, everyday ways.
Riot's COO is suspended, Fortnite vaults the Infinity Blade, and Overwatch League announces its plans for Season 2. Featuring beastcoast CEO Grant Zinn, University of Califonia and Irvine Director of Esports Mark Deppe. Plus - EndGameTV COO Aiden McCaig previews Smash Ultimate's first major, Don't Park on the Grass 2018.
More and more retailers are adopting mobile payment technology, but is all that innovation a good thing? A New York City Council member is proposing a ban on cashless establishments, saying it unfairly targets minority populations. Jason Oxman from the Electronic Transaction Association joined Cheddar to discuss.
China is considering banning battle royale games, the legendary Virtus.Pro roster disbands, and the Winter Royale is ruined by the Infinity Blade.Featuring interviews with Ghost Gaming's Kayuun, DC Overwatch Assistant GM Kate Mitchell, StackUp Director of Veteran Services Dave Crouse, and a Capcom Cup preview with Amanda Stevens.
In a conversation with Cheddar, Pulitzer-winning journalist Charles Duhigg discussed his months of reporting on Tesla and Elon Musk as the Model 3 production ramped up.
As Cheddar reflects on 2018, we are profiling the most innovative, flamboyant, and often-controversial entrepreneurs and corporate leaders who delivered the year's most memorable moments in business. Of the CEO Class of 2018, who was crowned Biggest Flirt? Class Clown?
