Can Spotify and Dropbox finally prove that tech is a sound investment?

After a disappointing flotation for Snap, the music service and the data storage site have their doubters as they head to market

The message to investors from Spotify last week had a familiar ring for any veteran of the tech gold rush: “The trend towards profitability is clear.”

The music streaming service is hoping to banish the memory of a difficult year for technology flotations. Similar promises of digital alchemy – heavy cash investment transforming into an ever-burgeoning bottom line – followed the stock-market launch of Snap last year. So far, investors in the owner of Snapchat have been underwhelmed, but last week 35-year-old Daniel Ek, Spotify’s co-founder and chief executive, was adamant that his music streaming service would deliver the kind of returns that have proved elusive for tech upstarts since the blockbuster float of Facebook.

Continue reading…

Read full original article »