Spotify, Apple Music's main competitor, this morning opened on the New York Stock Exchange at $165.90 per share, valuing the company at $29.5 billion.

When Spotify filed to go public in February, CNBC estimated the company's valuation at ~$23 billion based on private trades that had reached as high as $132.50. Spotify used the $132 per share figure as its reference price, which would have given the company a $23.5 billion valuation.

spotify logo
As noted by TechCrunch, Spotify is not selling its shares on the stock market and is not raising money today. Its direct listing is instead a collection of transactions from existing shareholders selling shares to stock market investors.

Spotify employees are allowed to sell their shares right away, unlike with a traditional IPO, which could lead to volatility in the coming weeks.

As of December 31, 2017, Spotify had 159 million active monthly users and 71 million premium subscribers, which Spotify says is "double the scale" of Apple Music. Apple as of February boasted 36 million paying subscribers.

In an appearance on CBS This Morning, Spotify cofounder and CEO Daniel Ek today discussed the company's public offering and a recent report from The Wall Street Journal suggesting Apple Music is on track to overtake Spotify in U.S. subscribers.

In response, Ek said that because Spotify is twice the size as Apple Music, the company "still has some room." Ek said that he's "very happy" with the growth that Spotify is seeing. The music industry, he says, is too big for Spotify alone.

"What we've found is that when we've got competition, it actually grows the market because more people are now talking about streaming. It's easy to forget that just three years ago, even in the U.S., streaming wasn't a thing," he said.

Update: Spotify closed at $149.60, giving it a market cap of $26.5 billion.

Top Rated Comments

jacobh101 Avatar
54 months ago
for a company that has never turned a profit. wow
Score: 18 Votes (Like | Disagree)
iMi Avatar
54 months ago
These tech valuations are ridiculous.

Edit to add that the valuation suggests a per active user value of $188. That’s everyone. Not just premium paying customers.

Seems steep.
Score: 8 Votes (Like | Disagree)
Krayzkat Avatar
54 months ago
there’s definitely another tech bubble brewing.
Score: 6 Votes (Like | Disagree)
Kabeyun Avatar
54 months ago
Was planning on learning how to short a stock. Now that I’ve read that Spotify management is comparing Spotify to the “scale” of Apple Music, without acknowledging that Apple Music is supported by a massive profit machine, I really want to learn how to short a stock.
Score: 5 Votes (Like | Disagree)
tomnavratil Avatar
54 months ago
What a joke. Congrats to Spotify’s management as this valuation is totally messed up considering they didn’t make any profit and lack any strategic direction.
Score: 5 Votes (Like | Disagree)
69650 Avatar
54 months ago
Good luck to them. Without the success of Spotify, Apple Music would not exist.
Score: 4 Votes (Like | Disagree)

Popular Stories

iOS 16 mock for article

Gurman: iOS 16 to Include New Ways of System Interaction and 'Fresh Apple Apps'

Sunday May 15, 2022 6:14 am PDT by
iOS 16 will include new ways of interacting with the system and some "fresh Apple apps," Bloomberg's Mark Gurman has said, offering some more detail on what Apple has in store for the upcoming release of iOS and iPadOS set to be announced in a few weeks at WWDC. In the latest edition of his Power On newsletter, Gurman wrote that while iOS 16 is not likely to introduce a major face-lift to...
maxresdefault

Unbox Therapy Shares Hands-On Look at iPhone 14 Pro Max Replica

Monday May 16, 2022 4:40 am PDT by
YouTuber Unbox Therapy has shared a hands-on look at the iPhone 14 Pro Max using what he claims is a one-to-one replica created by third-party case makers with access to detailed schematics and dimensions for Apple's new upcoming flagship smartphone. As with the iPhone 13 Pro lineup, in 2022, we are expecting a 6.1-inch iPhone 14 Pro and a 6.7-inch iPhone 14 Pro Max, but this time the Pro...
RIP iPod Feature

RIP iPod: A Look Back at Apple's Iconic Music Player Over the Years

Friday May 13, 2022 2:25 pm PDT by
Apple earlier this week announced the discontinuation of the iPod touch, and because it was the last iPod still available for purchase, its sunsetting effectively marks the end of the entire iPod lineup. To send the iPod on its way, we thought it would be fun to take a look back at some of the most notable iPod releases over the last 21 years. Original iPod (2001) Introduced in October...
macOS Monterey 2

Apple Releases macOS Monterey 12.4 With Support for Studio Display Webcam Update

Monday May 16, 2022 10:10 am PDT by
Apple today released macOS Monterey 12.4, the fourth major update to the macOS Monterey operating system that launched in October 2021. macOS Monterey 12.4 comes over two months after the launch of macOS Monterey 12.3, an update that added Universal Control. The ‌‌‌‌‌macOS Monterey‌‌ 12.4 update can be downloaded on all eligible Macs using the Software Update section of System...
iOS 15

Apple Releases iOS 15.5 and iPadOS 15.5 With Wallet and Podcast Updates

Monday May 16, 2022 10:00 am PDT by
Apple today released iOS 15.5 and iPadOS 15.5, the fifth major updates to the iOS and iPadOS 15 operating systems that were initially released in September 2021. iOS and iPadOS 15.5 come a little over two months after the launch of iOS 15.4 and iPadOS 15.4. The iOS 15.5 and iPadOS 15.5 updates can be downloaded for free and the software is available on all eligible devices over-the-air in...
airpodsprodesign

Kuo: AirPods, MagSafe Battery Pack, and Other Apple Accessories Also to Switch to USB-C in Future

Sunday May 15, 2022 5:59 am PDT by
Earlier this week, well-known Apple analyst Ming-Chi Kuo claimed that Apple plans to release at least one iPhone 15 model with a USB-C port in 2023. Now, in a follow-up tweet, he has claimed that accessories like AirPods, the MagSafe Battery Pack, and the Magic Keyboard/Mouse/Trackpad trio would also switch to USB-C in the "foreseeable future." Both the iPhone and all of the aforementioned...
apple tv 4k design green

Apple Releases tvOS 15.5 for Apple TV HD and Apple TV 4K

Monday May 16, 2022 9:57 am PDT by
Apple today released tvOS 15.5, the fifth major update to the tvOS operating system that first launched in September 2021. tvOS 15.5 comes more than two months after the release of tvOS 15.4, an update that brought support for captive WiFi networks. tvOS 15.5 can be downloaded over the air on the Apple TV through the Settings app by going to System > Software Update. ‌‌‌‌‌‌Apple...