Spotify’s IPO Went Really Well, Stocks Trade Higher Than Expected

It’s always good to hear when you are doing better than you initially thought you would and this is exactly the situation that Spotify has found itself in with its IPO. The traders seem to be absolutely loving the music streaming service’s offer and gobbling it up. This has resulted in share prices topping out at $169 during the day and closing at $149.01.

Marking just how enthusiastic traders seem to be with regards to the Spotify IPO, the company was valued at $29.5 billion at the start of the day, The New York Times reports. This eventually dropped down to $27 billion, which is still above the max $25 billion projection that analysts were estimating for the IPO.

This development is not just being taken as good news for Spotify but also as an encouraging news for the music industry. It basically proves that music streaming is where the future of the market is at, at least as far as the financial growth is concerned, which has been a challenge that music labels have had to contend with since the internet really took off.

As Financial Post also notes, the successful launch of its public offers makes Spotify’s CEO Daniel Ek the biggest beneficiary of the surprisingly warm reception. Holding a 27 percent stake in the company, he is now worth $7.4 billion.

Despite concerns with regards to the profitability of the music streaming service, it seems its early lead in the market has made the Swedish company more credible to investors than initially expected. There will still be some kinks that Spotify will need to work out with both the music labels and the artists that they represent, however.

So far, only the major brands in the music industry seem to be profiting most from all revenue earned by Spotify. Both the streaming platform and the actual artists are hardly getting a piece of the pie.