WHAT’S BEING CLAIMED:
- Spotify’s Initial public offering(IPO) or stock market launch on Tuesday was a success as it began trading at $165.90, higher than the New York Stock Exchange’s (NYSE) set “reference price” of $132.
- Spotify is based in Stockholm, Sweden so the NYSE tried to welcome it by flying that country’s flag in front of its building beside two American flags.
- The problem, however, it featured a wrong flag when it hung the Swiss flag instead.
The NYSE messed up Tuesday when it attempted to celebrate Spotify’s IPO by hanging the flag of Switzerland outside its building. Spotify is a Swedish-based company.
Social media users had a feast day posting about the flub.
Christian Christensen, professor of Journalism at Stockholm University, tweeted: “In an attempt to honor Swedish Spotify going public, the New York Stock Exchange, of course, puts up a Swiss flag. “
The NYSE acknowledged the blunder on Twitter and corrected its mistake.
“We hope everyone enjoyed our momentary ode to our neutral role in the process of price discovery this morning,” it tweeted.
“Our flag guy was rocking his Spotify playlist a little hard this morning and grabbed the wrong flag,” the NYSE also tweeted but deleted it afterward.
The Swedish-American Chamber of Commerce New England seemed not to be affected nor offended by the mistake, congratulating the giant digital music service and its CEO, Daniel Ek in its tweet.
“Congratulations to Spotify and Daniel Ek. The Swedish/Swiss mixup is a common mistake made even more difficult by the fact that we Swedes also have great chocolate !!” the SACC-NE wrote.
But aside from the flag mixup, there are other controversies that surround the music streaming service’s IPO.
- Spotify’s debut was unconventional. It’s using a “direct listing” on the New York Stock Exchange, different from a traditional IPO.
- It’s still not profitable, even lost US$3 billion since it started 10 years ago.
- It has a strong list of competition, such as Google and Amazon, which offer similar music streaming services.
- According to FactSet, Spotify has a market value of nearly $29 billion.