1. Spotify Technology S.A. (NYSE:SPOT)
Number of Billionaires: 17
Sweden-based, Spotify Technology S.A. (NYSE:SPOT), is a leading global audio streaming service offering users access to a vast library of music, podcasts, and other audio content. As of 2024, Spotify boasts 675 million monthly active users, including 263 million paid subscribers, positioning it as a leader in the music streaming industry.
In 2024, Spotify Technology S.A. (NYSE:SPOT) achieved significant financial milestones, reporting an 18% increase in revenue to $16.95 billion. This growth was propelled by higher subscription fees that did not deter user growth, reflecting the platform’s strong value proposition. The company also paid out over $10 billion in royalties, up from $9 billion the previous year, while reducing the percentage of total revenue spent on royalties to 59%. This strategic cost management contributed to a gross margin of 30% and an EBITDA of $1.48 billion, marking Spotify’s first full year of profitability. The company’s market value more than doubled in 2024 and has increased by another 16% since January 2025, indicating robust investor confidence.
On March 13, Spotify Technology S.A. (NYSE:SPOT) announced the launch of a new publishing program that allows authors to submit short-form stories for audiobook adaptation, expanding its presence in the audiobook market. The company will handle production and distribution, positioning itself as a stronger competitor to Audible, which dominates the audiobook industry with exclusive short-form content. This move follows Spotify’s 2021 acquisition of Findaway, a digital audiobook distributor.
Financially, Spotify Technology S.A. (NYSE:SPOT) continues to break records, recently surpassing $10 billion in annual payments to the music industry—more than any single retailer in history. However, its stock has faced volatility, losing 16.35% over the past month and underperforming the broader market. Despite this, analyst sentiment remains bullish, with 41 analysts rating the stock, 63% of whom have issued a “Strong Buy” rating.
On March 14, 2025, Spotify Technology S.A. (NYSE:SPOT) closed at $574.79, up 6.86% in a single day, extending gains from earlier in the week. Strong revenue growth and strategic expansions keep investors optimistic about future performance.
Overall, Spotify Technology S.A. (NYSE:SPOT) ranks first on our list of best European stocks to buy according to billionaires. While we acknowledge the potential for SPOT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SPOT but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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