Investors looking at the success of almost any technology initial public offering over the past ten years is likely kicking themselves for not having gotten in early. While many IPOs floundered after opening [Facebook, Inc. (NASDAQ:FB)] and others still have not gotten out of their post-IPO funk [Snap Inc. (NASDAQ:SNAP)], the upcoming Spotify IPO has garnered a lot of attention of late for a number of reasons.
First, investors will be interested to know what the company expects to aim for, in terms of a target range, upon going public. After insiders take money off the table, the real valuation the open market can demand for Spotify will be a tricky one to place a value on. Every tech nerd and hardcore analyst will be taking out their financial model and vigorously plugging in numbers to see who can come closest to determining how Spotify will perform once public.
Any headwinds prior to the upcoming IPO are likely to be analyzed closely. Recent reports that Youtube will be launching a music streaming service to take on Spotify has garnered a significant amount of attention; the amount of credence analysts and investors give such reports will need to be factored in as well.
As with any IPO, taking a long-term view will be necessary for any investor serious about investing in and sticking with Spotify. While I will be on the sidelines, I will certainly be watching how this offering plays out.
Invest wisely, my friends.
