Spotify’s shares on the stock market have momentarily begun trading, and according to Music Business Worldwide, individual shares have officially debuted at $166 each, resulting in a total market cap total of $29.6 billion.
This comes after months of analysts speculating the streamlining monolith’s value, with reports suggesting that private trades of the company had previously placed its worth between $18 and $44 billion.
In 2015, Spotify’s valuation was priced at just $8 billion – this figure has tripled in 3 years. Although it’s growth may seem healthy, experts have warned that ‘price volatility’ is expected due to Spotify’s unusual ‘direct listing’ approach to flotation.
Here’s what Spotify’s founder Daniel Ek said about the public listing of shares,
“Lots of people have asked me how I feel about tomorrow’s listing”, he wrote. “Of course, I am proud of what we’ve built over the last decade. But what’s even more important to me is that tomorrow does not become the most important day for Spotify.”
“It’s the day after, and the following day that matters — and all those days to come.”, he continued. “Because that’s when we will continue the hard and important work of our mission: To unlock the potential of human creativity — by giving a million creative artists the opportunity to live off their art and billions of fans the opportunity to enjoy and be inspired by it.”
If you’re thinking of investing in the platform – here are a few of our tips before you go ahead with the decision!