Spotify Tumbles as Profit Miss Overshadows Subscriber Gains

Spotify Technology SA shares tumbled on Tuesday after the streaming company gave a muted outlook for profit and subscriber growth in the current quarter.

The Stockholm-based company forecast gross profit margins of 31.5% in the second quarter, missing analysts’ average estimate for 31.6% according to data compiled by Bloomberg. Spotify sees monthly active users rising to 689 million, less than the 694.4 million analysts expected.