Spotify CEO warns of 'ups and downs' ahead of Wall Street listing

New Technology Is Going To Make You Even Less Patient When Your Spotify Won’t Load Cody Lewis

Currently, the music streaming service boasts 71 million paying subscribers, an impressive figure given that Spotify only had 20 million paid subscribers in June of 2015.

Spotify had 4.09 billion Euros in revenue last year (or close to $5 billion), compared to 2.95 billion Euros (about $3.6 billion) the year before.

The stock began trading at $US165.90 a share shortly after noon, resulting in a valuation of roughly $US30 billion.

Spotify has filed a registration statement (including a prospectus) with the Securities and Exchange Commission ("SEC") relating to its ordinary shares. It had 71 million paid subscribers as of December 31 and 157 million monthly active users.

A reference price has been set at $132 per share, but actual trading prices could vary widely for the Swedish streaming behemoth, depending on the buy and sell orders collected by the stock exchange from broker-dealers.

"Apple is growing faster than Spotify and has a different business model whereby music does not have to be profitable on a standalone basis", he said. Spotify is the biggest company to ever go public via direct listing, and the first on the NYSE. "Normally, companies don't pursue a direct listing", Ek wrote in a public post.

While pressure is on to pay higher royalties to music creators, Spotify has made inroads with artists.

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Follow Spotify's movement on the NYSE.

"This direct listing will cost them only 10 to 15 per cent of that amount - that's a major cost saving", he said.

"Officially we are not even calling it an IPO", says Matt Kennedy, an analyst at Renaissance Capital, which manages IPO-focused exchange-traded funds.

Spotify is launching a direct initial public offering (IPO) in which it will sell stock under the ticker SPOT directly to investors instead, of going through an underwriter. But until then let's step back and admire this whole thing for the zeitgeist-ian work of art that it really is; Spotify is about to unleash the first authentically Millennial IPO. The stock market has also been volatile recently with the Dow Jones industrial average falling more than 450 points, or almost 2 percent, Monday. It will not have some of the safeguards traditionally provided by investment banks, which try to prevent new stock from following below a certain price.

"While this is obviously a big day and I'm very proud of my employees, I really just feel like we're in the early days, not celebrating the end days as so many other companies are doing", Ek said.

"If the stock is choppy when it takes off the stabilization agent attempts to create a floor of where the stock price could go", said Lise Buyer, an IPO consultant with Class V Group in Silicon Valley.

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