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Spotify traded down 10% on first day, achieved $26.6B market cap

techcrunch.com

29 points by bitumen 8 years ago · 7 comments

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jaweb 8 years ago

"Some on Wall Street are puzzled as to why Spotify would want to go public without raising money"

I'm not sure it's that puzzling - they wanted liquidity, but don't need any more cash so don't want to dilute the existing equity.

Also worth noting a stat lower down the article that's a different point of view to the "down 10%" of the headline:

'$132 was used as a “reference point,” valuing the company at $23.5 billion. Since there was no IPO price, that demarcation is being used to say that Spotify traded up about 13% on its first day.'

Credit to them for doing something non-typical that fits what they needed. It seems like it's gone according to plan so far.

anonu 8 years ago

Whether it traded up or down is a matter of perspective - are you comparing to the opening price (~160) or the initial indicative price (~135)... not that it matters to the guys at SPOT. Going public is a major feat in itself...

techsupporter 8 years ago

Duplicate of: https://news.ycombinator.com/item?id=16746680

ssijak 8 years ago

"Buy the dip"

  • tarellel 8 years ago

    The whole last 2 weeks has been a dip. I'm pondering if I should heavily invest, before the summer seasons typical uptick due to massive consumer spending.

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