Spotify poised to be a $25bn company on eve of IPO

Music streaming service’s NYSE flotation comes amid fierce competition in the sector and high volatility

Spotify is poised to press the play button on a stock market float that will test investors’ faith in its future prospects, amid mixed fortunes for fast-growing technology companies.

Analysts said the performance of the music streaming service’s shares on its first day of trading on Tuesday would gauge market opinion on whether it can stave off fierce competition for music fans’ wallets and eventually make a profit.