Spotify value exceeds $26bn after float

Spotify value exceeds $26bn after float

The shares will simply float on the New York Stock Exchange, with no banks to mop up any excess stock, no-one to set the share price via the underwriting process and no-one to allocate shares to investors. Based on the total number of shares outstanding after the listing, Spotify has a market value of about $27.8bn.

The report has found that fraudsters are also hacking Netflix and Apple to glean user's private details and sell on subscriptions and accounts.

"Spotify's strong market debut shows that investors regard it as a healthy and promising business, and it's easy to see why", eMarketer analyst Paul Verna told FOX Business.

It used a "direct listing" on the New York Stock Exchange that allows the company's early investors and employees to sell as many shares as they want whenever they want.

The unusual listing thus added to the suspense over how Spotify would fare on the market as the company has yet to turn a profit. Spotify shares climbed in the minutes after it began trading through a direct listing.

Turkish manufacturing PMI falls sharply but still in growth territory in March
A 0.7% gain in private construction in February from January was outweighed by a 2.1% decline in public construction projects. New orders increased at a robust pace for the 18th month in a row thanks to greater sales to domestic and export clients.

Spotify generated revenue of €4.09 billion (£3.57 billion) last year, up from €2.95 billion (£2.57 billion) the year prior, for growth of 39 percent. In contrast, Spotify raised exactly $0 in its IPO yesterday.

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.

Shares initially "popped" up to $165 (£118) on opening, way above its guide price of $132 (£93). Normally, companies spend their day doing interviews on the trading floor touting why their stock is a good investment. Our focus isn't on the initial splash. However, Michael Carvin, Chief Executive of personal finance company SmartAsset, pointed out that this might be an exceptional case and warned other companies from being carried away by Spotify's success. Instead, we will be working on trying to build, plan, and imagine for the long term.

With a couple of exceptions, Spotify's investors were free to unload their shares in the almost 12-year-old company.

Now, the service has 71 million paying customers, making it the most successful music streaming company to date, surpassing Apple Music, Google Play Music, and Tidal among others.

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