Spotify, a popular music streaming service, showed in its annual financial statement that its 2016 operating loss widened, but its revenue grew significantly, Reuters reports.
The report comes ahead of a possible listing on the New York Stock Exchange, which is expected before the end of this year. The company recently hired advisers to explore a direct listing.
Spotify reported an operating loss of $389 million in 2016, Reuters said, and that's a 47% increase compared to the prior year.
"This is explained by substantial investments that have been made during the year, mostly in product development, international expansion and a general increase in personnel," Spotify said in its filing.
Spotify's revenue grew by more than 50% in 2016 to 2.93 billion euros due to the 48 million paid subscribers the company gained, up from 28 million in the year before.
What's Hot on TheStreet
Beware Tesla fanboys: Tesla (TSLA) - Get Report burning money, but shareholders are the likely ones to blister and feel the pain. The standard 90-day corporate equity lockup period for Tesla, following its $402.5 million stock sale of March 16, ends Thursday TheStreetreports. As a result, Tesla will be free to conduct another stock offering as soon as Thursday, which is a real possibility given the electric car company's debt situation, partly due to its Solar City investment, and need for additional cash. Any new issuance the company may seek would likely need to take place before July, which is when Tesla issues its quarterly report on car sales. Alternatively, an offering could come in late August after Tesla issues its quarterly financial report.
Shares could start to come under pressure.
Mining stocks get whipped: Global mining stocks found themselves in a hole Thursday TheStreetreports, after South Africa's government said that at least 30% of domestic mining assets should be black-owned even if previous black owners sell their stakes. South African-exposed mining companies fell sharply in the wake of the announcement. London-listed Anglo American plc (AAUKF) tumbled 4.4% to 1,013 pence ($23.87) a share, South32 Ltd fell 4% to 158 pence, BHP Billiton plc (BHP) - Get Report was down 2% to 1,155 pence, Rio Tinto (RIO) - Get Report fell 2% to 3,079 pence and Glencore plc (GLNCY) fell 2.6% to 279.2 pence. South African gold producers were hit even harder. Sibanye Gold Ltd. (SBGLF) plummeted 6.7% to 1,562 South African rand ($121.38) and AngloGold Ashanti Ltd. (AU) - Get Report fell 4.8% to 14,015 rand.
Amazon eyes a new prize: Amazon (AMZN) - Get Report may be preparing a deal to buy Slack Technologies in a deal that could value the messaging startup group at more than $9 billion, TheStreetpoints out. With Microsoft's (MSFT) - Get Report deal for LinkedIn being well-received, this deal seems logical for an Amazon that is aggressively expanding into the cloud.
One has to wonder though: why isn't Apple (AAPL) - Get Report considering Slack or for that matter, Twitter (TWTR) - Get Report . Each service would provide valuable insight into human behavior from which to build new products and services.
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