Spotify's shares open at $165.90 valuing the music streamer at $29 billion

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In the long-run, Spotify's performance in the stock market will largely depend on its business performance and outlook. The stock opened at $165.90 per share and has been trending down since then; according to Market Watch, as of this writing, it's hovering around $153.

Spotify selected market maker Citadel Securities for a role in setting an opening price based on buy and sell orders.

CEO and co-founder Daniel Ek has voting power that represents 23.8% of the company.

"A couple thousand people totally dedicated to the task of maximizing the value of music and delivering the most compelling product to its users is going to beat a company for whom it's not part of the core business", Ken Parks, the chief content officer at Spotify from its founding until 2015, previously told CNN.

Users of streaming music services don't like to rebuild playlists or profiles, making it likely they will stick with Spotify if given good value, according to the analyst.

Music sales soared anew past year in the United States backed by the rise of streaming, bringing revenue to a level last seen a decade ago. It has about 71 million paying customers and hopes to increase that to 96 million. However, Spotify has never made any profit and with the rise of the likes of Apple and Amazon as competitors, this may become an issue for potential investors who want to invest in the firm. Spotify wanted to democratize the process and they didn't need to raise fresh money through the offering as is often the case with an IPO. Experts warned of some major volatility though due to Spotify's unusual 'direct listing'.

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"The attraction of the music-streaming service probably lies in Spotify's strong market share and rapidly growing revenues", Khalaf said.

"I have no doubt that there will be ups and downs as we continue to innovate and establish new capabilities", Ek said in a blog post on Monday.

"Normally, companies ring bells".

"Nothing ever happens in a straight line - the past ten years have certainly taught me that".

"While this is obviously a big day and I'm really proud of my employees, I really just feel like we're in the early days, not celebrating the end days like so many other companies are doing", he said.

The direct listing also meant the company listed without underwriters, a set price, a set supply of shares, or a lock-up on existing investors.

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