Four Takeaways from Spotify’s Market Debut

Morris DeFeo was quoted in the Financial Times, discussing Spotify's first day of trading after going public. By opting for a direct listening over a traditional IPO, the company did not hire banks to stabilize share pricings if things went poorly and didn't force existing shareholders to agree to a lock-up period. Although the performance of the direct listing went well to the surprise of many, the company still faces criticism. DeFeo suggested that one day of trading wasn’t enough to declare the non-traditional listing style as a success nor a failure. He added, “The market judges. It’s just one day. We have to wait and see.” (FT subscription required)