Spotify’s ascent as the most used digital-music service in the world has paralleled a similar increase in its private market valuation. As of its most recent round of fundraising, Spotify’s valuation now sits at an impressive $8.5 billion. Then there’s Pandora. The online music pioneer’s market cap peaked at slightly more than $7.5 billion in early 2014, only to see its stock plummet since then by roughly 75%. Today, Pandora’s market capitalization stands as a mere fraction of Spotify’s most recent private market valuation. So why is Spotify more valuable than Pandora?
Source: The Motley Fool