10 Best Kid-Friendly Stocks To Buy Right Now

3. Spotify Technology S.A. (NYSE:SPOT)

Number of Hedge Fund Holders: 98

Spotify Technology S.A. (NYSE:SPOT), an audio streaming company, has grown significantly over the past few years. It allows people to discover music, listen to podcasts, stay on top of celebrity tours, and optimize listening profiles. The app is present in 184 countries and has more than 640 million monthly active users, comprising 252 million premium subscribers. The company grew its monthly active users by 11% year-over-year and revenue by 19% year-over-year to reach EUR 4 billion in the third quarter of 2024.

2024 marked one of the biggest Spotify Wrapped events yet, attracting more users to the audio streaming application. To improve and provide premium customer satisfaction, Spotify Technology S.A. (NYSE:SPOT) is making significant investments in AI. On December 4, the company announced that it made improvements to its AI DJ and AI Playlist, with a new addition; Spotify Wrapped AI Podcast. With these advancements, users can enjoy a more personalized streaming experience, positioning it as a customer favorite. In the third quarter of 2024, Spotify Technology S.A. (NYSE:SPOT) expanded its AI Playlist in beta to six markets, launched comments for podcasts, and expanded music availability to 85 new markets.

Artisan Partners’ Artisan Mid Cap Fund stated the following regarding Spotify Technology S.A. (NYSE:SPOT) in its Q3 2024 investor letter:

“Among our top Q3 contributors were Argenx, Spotify Technology S.A. (NYSE:SPOT) and Exact Sciences. Spotify is a leading global audio streaming franchise with over 600 million monthly active users. We believe its position in the supply chain is solid given a secular trend of fragmentation in the music industry as well as internal product and pricing initiatives. Shares rallied after the company reported strong earnings results, including 20% revenue growth. Importantly, the company’s profit margin is expanding nicely, and we believe it can rise further due to likely price increases, potentially better terms with labels and further cost discipline.”