Spotify makes its debut on Wall Street, the title is called Spot, which stands for Spotify Technology.
There is talk of a share value that is between 23 and 25 billion dollars.
The Swedish giant was quoted on the New York Stock Exchange (NYSE), but not with the usual IPO, they preferred use the so-called “direct quotation”, this means that there will be no financial intermediaries to manage the launch of sales. No issuance of new securities, no bank fees, no speech to convince investors. The shares will be bought directly on the stock exchange.
Daniel Ek, the founder, and his group have declared to the approval committee a 2017 financial balance in which emerge 4.09 billion euros of revenues, in which the growth stands out compared to 2.9 in 2016 and 1.9 in 2015 .
In 2017 it had 159 million users, of which today there are 71 paid subscribers.
The 2018 goals are to reach between 92 and 96 million subscribers compared to a range of users that should be around between 198 and 208 millions.
Significant numbers, an increase of 40% in 2017 and an estimate of 30% for 2018, but the group still does not produce income, but losses, 378 million euro in 2017, which will be reduced to a range between 230 and 330 millions in 2018.
It is clear that this does not scare investors, in fact it is now widely recognized that shareholder value is no longer so tightly tied to profits when we speak about in startup tech companies.
Companies like Tesla and Amazon, among the most quoted in the world, still produce at a loss in their main assets.
In contrast, a listed multinational that produces billions of revenues, the first in the world for available liquidity, Apple, will also be the first antagonist of Spotify with its Apple Music.
It rivals up to a certain point, because I believe that as happens in the whole mass technology consumption sector, it will remain divided between the “open world”, where there are Google, Samsung, HP, Sony etc … and the “world Apple”, where Apple does everything and everything is connected within this world.
So I think that Apple users, for the most part will remain to listen to their favorite songs on Apple Music, while the rest will remain on Spotify, and I also believe that the managers of Spotify have already taken into account.
If you really want to be alternative, the cool ones, there’s Tidal. The top class product.