By Conor White
Analysts were wrong about Spotify.
That's according to BTIG media and tech analyst Rich Greenfield, who initiated coverage of the stock this week with a "Buy" rating. In an interview with Cheddar Tuesday, he said he should have been more optimistic at the start.
"We were pretty concerned with how the stock would trade, and looking for it to settle, and honestly, we just tried to be cute," he explained. "The reality is, this is a great platform."
Spotify went public on the New York Stock Exchange in April, directly listing shares rather than launching a more traditional IPO. Shares opened at $165.90 and, after some initial volatility, have risen to nearly $190 a share, almost a 13 percent gain.
Greenfield said he doesn't just expect Spotify to keep trending up; he also thinks the entire music streaming industry will follow.
"We think this is a company that has lots of room to grow, the category has a lot of room to grow," Greenfield noted. "This is not about Spotify versus Apple, or Spotify versus Amazon Music."
"There is a major shift toward people listening to paid, premium music services."
Greenfield insisted these companies are not at warーbut he still expects Spotify to remain king.
"Spotify is the only one of these companies that is truly global, works across all devices, works in and out of the home," he explained.
"Pandora's only in the U.S., Apple is really focused on iOS devices. If you want anything that really works anywhere, in and out of the home, you're coming out with Spotify."
Spotify reports earnings before the market opens on Thursday.
For full interview, click here.