Spotify Faults Itself for Margin Gains; Stock Hits New Lows

Spotify Faults Itself for Margin Gains; Stock Hits New Lows
The Spotify logo is displayed on a screen on the floor of the New York Stock Exchange, on May 3, 2018. Brendan McDermid/Reuters
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LONDON/STOCKHOLM—Spotify sent its shares tumbling as much as 10 percent on Nov. 1 after the world’s most popular paid music streaming service said it would continue to sacrifice profit margins to generate future growth.

The Swedish company came close to making its first-ever operating profit in the third quarter, years ahead of schedule, which the company said was because it had not been spending heavily enough to hire more engineers.