Published: Wed, April 04, 2018
Entertaiment | By Simon Arnold

What Is Spotify Stock Symbol? Everything You Need To Know About IPO

What Is Spotify Stock Symbol? Everything You Need To Know About IPO

Spotify Technology SA on Tuesday completed the largest-ever direct listing, valuing the world's leading streaming music service at as much as $30 billion, but its shares stalled after an early spike.

The stock opened at $165.90, giving the company a market value of almost $30 billion.

Spotify's opening act on Wall Street struck a chord with investors betting the unprofitable company's trend-setting music streaming service will maintain its early lead over Apple and other powerful challengers.

Spotify's IPO has been unconventional by most industry standards.

Listen, this whole direct listing thing is definitely making Wall Street's butthole clench, and the hot-takes will be flying in at least one direction when we figure out what this company is actually worth because this is a fun new exercise in bullshit. Spotify will be straight listed on the NYSE without additional shares or fundraising.

CEO and co-founder Daniel Ek has voting power that represents 23.8% of the company. "So while [Tuesday] puts us on a bigger stage, it doesn't change who we are, what we are about, or how we operate". Sometimes we succeed, sometimes we stumble. Spotify's current chief financial officer, Barry McCarthy, held the same job when Netflix went public and remained in that position until leaving the video service in 2010. That could mean fewer roadshows - closed door meeting with potential buyers - and deals with bankers.

But Spotify's method isn't a simple IPO playbook for all tech startups. Experts warned of some major volatility though due to Spotify's unusual 'direct listing'.

"Spotify is not raising capital, and our shareholders and employees have been free to buy and sell our stock for years".

In an interview with CBS This Morning, Ek said that while he would look at the stock price when it opened, he felt the company is only in the "second inning", emphasizing his focus on the long term. "I don't see this as the beginning of the end of investment banks as IPO underwriters; this is a one-off, unique situation".

The Dow Jones industrial average and the S&P 500 were down almost 3 percent on Monday, and the tech-heavy Nasdaq had erased its gains for the year.Stocks got slammed on Tuesday with tech stocks dragging in the market as Amazon (AMZN) dropped 5% and was again in the headlines following a tweet from President Donald Trump. Spotify is going public at a time when there is pent-up demand for new tech IPOs. Ek owns closer to 9% of the business.

Spotify signs its first USA licensing deals with major record labels, which had previously restricted contracts to experiments in overseas markets.

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