Spotify Stock Struggles On Day 2, Live Nation Rises

Randall Padilla
April 5, 2018

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Spotify has been increasing its mix of paying subscribers, with 44% of users in 2017 paying for the service, up from 31% in 2015.

His outburst is viewed as politically motivated. Tuesday's first day closing price of $149.95. According to Reuters, Spotify - trading as SPOT - had a largely stable first day of trading, and at closing time, the company's shares were trading at $149.01 per share, giving Spotify a massive market cap of $26.5 billion, bigger than Snap Inc. which made its stock market debut previous year.

The opening public price will be determined by buy and sell orders collected by the NYSE from broker-dealers, the exchange said. "So while [the listing] puts us on a bigger stage, it doesn't change who we are, what we are about, or how we operate".

The Swedish company used a direct listing method: instead of issuing new shares, early investors in Spotify were able to sell their existing holdings to cash in on the service's growth over the past decade. But what's even more important to me is that tomorrow does not become the most important day for Spotify.

Still, $776.7 million will come in handy as Dropbox continues to invest in the business. Our focus isn't on the initial splash.

Spotify isn't selling any shares and there's no lockup period for company insiders or, with one exception, current shareholders. Rather than competing directly for incremental e-commerce transactions or online advertisements, they offer customers and suppliers something different'.

Spotify's market debut matches the performance of social media company Snap Inc. In 2009 Li Ka-shing, the billionaire behind Hong Kong's Hutchison Whampoa, a conglomerate that owns mobile phone network 3, was among investors who injected $50 million into the company, valuing it at $250 million.

But Spotify faces rising competition, most notably from Apple, which launched its own service in 2015 to seize a slice of the booming streaming market.

Like many other "unicorn" companies, Spotify has never posted profits.

"The similarities here, we believe, are much greater than the differences", RBC Capital Markets analyst Mark Mahaney wrote in a recent research note assessing the parallels between Spotify and Netflix.

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