Spotify's Daniel Ek is now worth about $2.3 billion

Spotify — Tomorrow

Spotify hits the right note

Spotify's unusual public debut was seen as an initial success for the music streaming service, but could pose a challenge to Wall Street if the stock performs well.

Staff at the stock exchange also hung the Swiss flag outside instead of flag for Spotify's native Sweden.

Spotify shares closed at $149.01 on the end of its first day of trading on the U.S. stock market yesterday (April 3), valuing the streaming service at $26.5 billion - more than Twitter and Snapchat.

Mediavision research finds that over 60 per cent of Swedish households subscribe to at least one service for music or TV streaming.

He noted that Spotify has been able to hold its own, maintaining 36 percent of the subscriber market despite the onslaught of Apple.

The company's launch comes at a hard time for the United States tech sector, as a series of political scandals surrounding companies including Facebook and Amazon has seen share prices tumble in recent weeks. Investors had initially pegged the company's value at $30 billion when the market opened. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Spotify's costs - including artist and record label fees - are greater than its revenue, although this gap is apparently narrowing, The Guardian notes.

The company's key competitor, Pandora, is worth about $1.2 billion, based on trading Tuesday.

Spotify, like fellow tech firms such as Tesla and Uber, has never turned a profit. "The constant is that we believe we are still early in our journey and we have room to learn and grow", commented Daniel Ek, CEO of Spotify. The company has become the de facto music service of sorts for smartphone users, with about twice as many paid subscribers as Apple Music, the second largest provider.

The digital music giant bypassed many traditional steps in listing as a public company.

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

Spotify is not raising capital, and our shareholders and employees have been free to buy and sell our stock for years. Nothing ever happens in a straight line - the past ten years have certainly taught me that.

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