SAN FRANCISCO (AP) — The Latest on Spotify’s Wall Street debut (all times local):
Spotify is hovering around $29 billion in market value on its first day of trading as the streaming music service hopes to gain ground in a growing industry.
The company’s key competitor, Pandora, is worth about $1.2 billion, based on trading Tuesday.
Spotify has been compared to streaming entertainment service Netflix for its growth potential. Netflix is worth about $122 billion.
Spotify debuts on the market with a boom, opening at $165.90 in an unusual “direct listing.”
The shares quickly wobbled in their first hour of trading, though remain well above the NYSE’s reference price of $132.
The market is still awaiting Spotify’s highly anticipated public debut as the streaming music service goes through with its unusual “direct listing”.
The NYSE had set a reference price of $132 for the stock, though the actual price will be determined by shareholders. The Swedish company’s use of a “direct listing” allows its early investors and employees to sell as many shares as they want whenever they want.
The company has traded between $48.93 and $132 over the last 12 months through private transactions, and indications Tuesday showed it could trade as high as $155.
The company, with more than 71 million subscribers, is not raising any money through the IPO.