Close
Close

Published

Spotify IPO qualified success, but excess sellers crashes price

Spotify duly went public and it was fairly clear that the appetite for holding the stock was exceeded by the supply of shares. It made it possible that 55.7 million shares, out of 178 million were “allowed” to be sold, just under 31% of the company, by investors and insiders, and during the first day the stock began at $167.7 and slowly slipped as 30 million shares were absorbed by the market and began trading a day later around $141. You cannot just go one way with stocks – selling – without the share price falling. The company reached a valuation of $29.9 billion during the day, and has now fallen to something closer to $25 billion, still on the…

Close