We recently compiled a list of the 10 Best Entertainment Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Spotify Technology S.A. (NYSE:SPOT) stands against the other entertainment stocks.
The entertainment industry is a global and fast-growing sector that encompasses film, music, social media, games, and live events. According to a report by The Business Research Company, the entertainment and media market was valued at $2.67 trillion in 2024. The market is expected to grow at a compound annual growth rate (CAGR) of 7.4% during 2025-2029 to reach a value of more than $3.82 trillion by the end of the forecast period. In 2024, the largest region in the entertainment and media market was North America.
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The industry is rapidly evolving thanks to technological advancements, changing consumer preferences, and global connectivity. The internet and mobile devices continue to make entertainment more accessible around the world. These factors ensure continued growth within the industry.
Entertainment companies are innovating their business models to stay competitive, especially as streaming services become more popular. Advertising is also becoming a key strategy for entertainment and media companies.
New technologies like AI, VR, and AR continue to revolutionize content creation and consumption. Moreover, the gaming sector is expected to grow in the coming years and this should support further growth in the entertainment industry. These trends offer significant growth potential, especially for entertainment companies involved in gaming and streaming.
Methodology
To compile our list of the 10 best entertainment stocks to buy according to billionaires, we looked for the biggest entertainment companies. We also reviewed our own rankings, financial media reports, ETFs, and stock screeners to compile a list of the best entertainment stocks. Next, we focused on the top 10 entertainment stocks most favored by billionaires. Data for the number of billionaire investors for each stock was taken from Insider Monkey’s Q4 2024 database. Finally, the 10 best entertainment stocks to buy were ranked in ascending order based on the number of billionaires holding stakes in them as of Q4 2024.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A person wearing headphones listening to an audio streaming service.
Spotify Technology S.A. (NYSE:SPOT)
Number of Billionaire Investors: 17
Number of Hedge Fund Holders: 101
Spotify Technology S.A. (NYSE:SPOT) is a leading provider of music and audio streaming subscription services. It allows users to listen to tracks, podcast titles, and audiobooks. The company has more than 675 million users, including over 250 million subscribers, in more than 180 markets around the world. Spotify Technology S.A. (NYSE:SPOT) ranks among the best entertainment stocks to invest in.
The company is strategically focused on expanding its user base and also improving monetization and profitability. Spotify Technology S.A. (NYSE:SPOT) is actively launching new features for creators and consumers. In Q4 2024, the company introduced Custom playlist covers in Beta to allow users to create their own cover art for the over 8 billion user-generated playlists on Spotify. Spotify Technology S.A. (NYSE:SPOT) also introduced a new video podcast offering for Premium Subscribers in the US, United Kingdom, Australia, and Canada. For creators, Spotify Technology S.A. (NYSE:SPOT) launched the Spotify Partner Program, a new monetization program that allows creators to earn more from their audio and video content.
The company’s strategic focus seems to be paying off as it closed 2024 with a record-breaking Q4 performance. Spotify Technology S.A. (NYSE:SPOT) reported that Monthly Active Users (MAUs) grew 12% year-over-year to reach 675 million, with net additions of 35 million, the largest Q4 in the company’s history. Premium subscribers also increased 11% year-over-year. Notably, Spotify Technology S.A. (NYSE:SPOT) reported that ad-supported revenue increased by 7%, driven by growth in impressions sold.
Overall, SPOT ranks 4th on our list of the best entertainment stocks to buy according to billionaires. While we acknowledge the potential of 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 that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
