Spotify made its highly anticipated Wall Street debut on Tuesday, with a closing price of $ 149.60, giving the music
streaming company a valuation of $ 26.6 billion.
Not exact matches
Other
companies facing similar questions about whether they can make good on early investor expectations — and lofty private - market
valuations — include online storage service Dropbox Inc., note - taking
company Evernote Corp., music -
streaming service Deezer SA and blood - testing
company Theranos Inc., said Anand Sanwal, chief executive officer of CB Insights, a firm that tracks startup investing.
One of the key inputs to
valuation is the risk adjusted cost of capital applied in discounting the future cash flow
streams, whether it be applied to dividends or the
company's free cash flow.
Given the
company's 11 - digit
valuation measured in the tens - of - billions of dollars, the listing has become as much a curiosity to Wall Street as it is the to fans who want to buy a piece of the
streaming music soon - to - be-ex-unicorn.
Facebook, a
company that's down $ 100 billion in
valuation over data privacy scandals, is looking to break into the game
streaming industry.