Spotify have made their debut on the stock market and it has rocketed their valuation skywards.

After rumours suggesting that Spotify were working towards an IPO for over a year they have instead just placed themselves on the New York Stock Exchange. Since arriving yesterday Spotify’s stocks and value have soared.

They opened on the NYSE with a stock value of $165.90 which instantly elevated their value from $19 billion to $29.5 billion. That’s an over $10 billion rise that nearly doubles their company’s valuation thanks to the price set by the market maker before Spotify went live for trading. Before they went onto the market the NYSE gave Spotify a reference price of $132 per share which put their valuation at $23.5 billion, a low estimate we now know.

Spotify’s direct listing on the stock market came as a surprise to many when their plan was revealed last month. It had been rumoured for a long time that Spotify were working towards an IPO (Initial Public Offering) which could have seen them raise billions more. Going for a direct listing on the stock market will however save Spotify potentially millions of dollars on banking fees as they can bypass investment bankers who would help them value the shares.

Despite potentially losing out on some gains going straight onto the NYSE Spotify’s sky high valuation currently makes them worth more than the 3 major labels; Sony, Universal, and Warner. Spotify’s position in the music industry cannot be understated and as their impact on the stock market cements itself with success Spotify will be looking to expand their business in new ways.

Rumours have been circulating, based on job adverts posted by Spotify themselves over the past year, suggesting that Spotify are moving into hardware. Spotify have been searching for new employees to lead the development of tech and have been testing their own voice search system lately, suggesting they’re looking into the Smart Speaker business.