The closing price was 14% of the $132 reference price set by the New York Stock Exchange prior to the start of trading. But while it was a solid start for Spotify, particularly at a time when the markets are volatile, there were some signs of choppy waters ahead.
Spotify stock opened the day at $165.90 with a total of 5.6 million shares changing hands in the first trade. The closing price of $19.95 was 9% lower than that, and after hours trading was even lower, hovering around $149.
Analysts are also worried about Spotify's path to profitability. Gabelli & Co. analyst John Tinker initiated his coverage of Spotify with a "hold" rating. "Apple is growing faster than Spotify and has a different business model whereby music does not have to be profitable on a standalone basis," Tinker wrote. He predicted $130 per share market value for the stock this year.