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Spotify float still set to top Snap and Twitter amid tech sell-off

Spotify is expected to be worth $26bn (£17bn) at the end of its first day of trade next week, more than social media platforms Snap and Twitter, according to IG client accounts.

IG's grey market, which allows traders to speculate on the music streaming giant's market capitalisation at the end of its first day of trading on 3 April, indicates that client accounts expect the company's share price to rocket.

Spotify is listing on the New York Stock Exchange and is currently estimated to be valued at more than $20bn. While IG's figure also tops Spotify's own estimated valuation, it is still well below that of Apple and Amazon because of their diversified businesses.

The $26bn estimation has also fallen from a high of $29bn, or $160.70 per share, just last week before the current tech sell-off.

Facebook has stolen the show from the Spotify IPO, but the IG grey market continues to see selling. IG clients now expect the market cap on the first day to be $26bn, around $144 per share," said Chris Beauchamp, chief market analyst at IG.

However, Beauchamp warned the sour mood around tech firms could soon hit Spotify shares.

"Napoleon once observed that generals should be lucky, not just good, and the same applies to companies listing publicly. Spotify may find its arrival spoiled by a general market rout that wont leave its listing immune.”

Spotify this week revealed revenue is expected to grow at a slower rate this year. This year Spotify will also feel the negative effects of foreign exchange rates, taking a hit of up to €300m (£263m).

Read more: Spotify's revenue is expected to grow at a slower tempo this year

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