“Spotify officially opened at $165.90 this afternoon in its wildly anticipated public debut,” Evan Niu writes for The Motley Fool.

“The NYSE had set a ‘reference price’ of $132 in the morning, serving as a sort of guideline for investors that were lining up to place orders,” Niu writes. “Since there were no investment banks crunching valuation numbers or setting a price, the reference price is really just a recommended starting point that is based in part on recent trading activity in the private market. Spotify shares had traded as high as $131.88 in the first half of March.”

“At that opening price, which was driven by strong investor demand for Spotify shares, the Swedish company is valued at $29.5 billion,” Niu writes. “That puts trailing-12-month revenue in the ballpark of 4.3 billion euros ($5.3 billion), meaning that shares opened at a valuation of about 5.6 times sales. That valuation prices in optimistic expectations for Spotify’s future, even as Spotify has long been unprofitable thanks to hefty royalty costs paid to record labels.”

Read more in the full article here.

MacDailyNews Take: It’ll be interesting to see how that price holds up, or doesn’t, over time.

You’d have to be stupid to subscribe to Spotify when it has 33% fewer tracks than Apple Music for the same price. Apple Music boasts a catalog of 45 million songs; Spotify has a mere subset of just 30 million. Don’t be stupid. If you’re still subscribing to Spotify, it’s past time for you to cancel it and upgrade to Apple Music. (See also: How to move your Spotify playlists to Apple Music.)MacDailyNews, February 6, 2017

Spotify is a poor man’s Apple Music. The demographics in this race, as ever, greatly favor Apple in the long run. — MacDailyNews, January 3, 2018

SEE ALSO:
Spotify files for direct listing of up to $1 billion; claims 71 million paying subscribers; lost $1.5 billion last year – February 28, 2018
Apple Music poised to knock off Spotify – February 12, 2018
Apple Music was always going to win – February 6, 2018
Apple Music on track to overtake Spotify, become No. 1 streaming service in U.S. this summer – February 4, 2018
Apple Music and Spotify now account for the majority of music consumption in the UK – January 3, 2018
Spotify files for its IPO – January 3, 2018
Spotify hit with $1.6 billion lawsuit from music publisher – January 2, 2018
Watch out Spotify and Apple Music, here comes Amazon – December 18, 2017
Spotify leads call for investigation into ‘troubling’ Apple and Google app store practices – May 5, 2017
Apple Music passes Pandora and Spotify in mobile usage – March 29, 2017
Spotify hits 50 million paid subscribers – March 3, 2017
Apple Music surpasses 20 million paid members 17 months after launch – December 6, 2016
Oh ok, Spotify listeners are upgrading to Apple Music – July 19, 2015
Spotify CEO claims to be ‘ok’ with Apple Music – June 9, 2015