Wall Street welcomed Spotify to public trading with one of the best tech stock debuts in recent memory, but some analysts say investors should moderate their expectations for the music streaming giant's shares in the coming days.
Spotify went public with a large base of paid subscribers.
The error was quickly rectified, with the yellow and blue Swedish flag taking the place of the Swiss cross.
Spotify and Tencent's music subsidiary announced a share swap in December, taking minority stakes in each other ahead of expected stock market listings this year.More news: Pats deal WR Cooks to Rams
Not so for the world's largest music streaming service. There was demand for the stock, and shares ended up 12.9 percent on their first day of trade on the New York Stock Exchange. Twitter was valued at $24 billion (£17 billion) after a good first day back in 2013 and then fell to nearer $21 billion (£15 billion).
For context that's around the same figures generated by Snap Inc's controversial IPO, which saw the social media company valued at $28 billion (£23 billion) at the close of its first day of trading past year.
In many public listings, and the investors pitch last month, Spotify has spoken about becoming a "platform". Before you invest, you should read the prospectus in that registration statement and other documents Spotify has filed with the SEC for more complete information about Spotify and its ordinary shares. The company said it had 71 million paid users as of December 31 and 156 million active users. Spotify's costs - including artist and record label fees - are greater than its revenue, although this gap is apparently narrowing, The Guardian notes.
Representatives of Universal, Warner and Merlin declined to comment, but no transactions related to those companies' stakes in Spotify have been announced.More news: Cardi B to become Jimmy Fallon's first Tonight Show co-host
"I know the financials of the company, I think the management is solid", Simmons said.
While Chief Executive Daniel Ek skipped NYSE rituals such as opening bell-ringing and trading floor interviews to tout the stock, the front of the 115-year-old Greek Revival exchange building was draped in a vast green-and-black Spotify banner.
"My job is to ensure that we keep our foot on the pedal during the ups, so that we don't become complacent, and that we continue to stay the course with a firm grip on the wheel during the downs".More news: Violence erupts in Kashmir after security forces kill militants