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Spotify Tumbles as Investors Question Podcast Investments

  • Stock is trading at the lowest since its 2018 direct listing
  • Gross margin forecast lags behind long-term targets: analyst
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Spotify Technology SA has spent more than a billion dollars in an effort to become the No. 1 name in podcasting, but investors’ patience is wearing thin on how much that will cost.

The company said Wednesday that its gross margin is expected to stay flat this quarter relative to the 25.2% it reported in the first quarter. That guidance trailed analyst estimates and overshadowed an otherwise strong earnings report.