Spotify’s stock market debut strikes chord with Wall Street investors
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.
After several hours of anticipation Tuesday morning, Spotify’s shares traded as high as $169 in their stock market debut before falling back slightly. The stock closed at $149.01 – well above its previous high of $132.50 in deals worked out during Spotify’s 12-year history as a privately held company.
The stock market’s warm welcome left Spotify with a market value of about $27 billion, according to FactSet. By comparison, internet radio station Pandora Media’s market value stands at $1.2 billion nearly seven years after that company went public.