Billionaire Daniel Sundheim’s Top 15 Stock Picks Heading Into 2025

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

D1 Capital Partners’ Equity Stake: $222.69 Million

Number of Hedge Fund Holders as of Q3 2024: 98

Spotify Technology S.A. (NYSE:SPOT) is an internet content and information company that provides audio streaming subscription services worldwide. The stock’s 155% rally year-to-date attests to the resilience of the company’s core business.

In the third quarter of 2024, Spotify Technology S.A. (NYSE:SPOT) had a record 640 million monthly active users. This comprised 252 million premium members who pay a monthly subscription fee and 402 million free users who are supported by advertisements. In Q3, total revenue reached a record $4.2 billion, a 19% increase over the same period last year.

Strong revenue growth, record subscriber counts, and soaring profits have all contributed to Spotify’s explosive run year to date. According to the company’s long-term outlook, there is still a lot of space for expansion. The company’s competitive edge stems from controlling 31% of music streaming market share. While Spotify Technology S.A. (NYSE:SPOT) faces stiff competition in the streaming business, its significant market share allows it to differentiate itself through pricing.

Spotify Technology S.A. (NYSE:SPOT) invests in advanced technologies to deliver diverse content formats. Its AI-driven recommendation engine ensures users see relevant content. Unique features like AI DJ and AI Playlist enhance user experience by creating personalized playlists and song lists based on prompts. Spotify is a major player in podcasting and is expanding in audiobooks, with over 375,000 titles, ranking second to Amazon’s Audible.