Robust Earnings Results Lifted Spotify (SPOT) in Q2

Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund’s Investor Class fund ARTMX returned 14.40%, Advisor Class fund APDMX posted a return of 14.45%, and Institutional Class fund APHMX returned 14.50%, compared to a 18.20% return for the Russell Midcap Growth Index. Global markets experienced a significant but volatile Q2, rotating from double-digit declines to double-digit gains. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Artisan Mid Cap Fund highlighted stocks such as Spotify Technology S.A. (NYSE:SPOT). Headquartered in Luxembourg City, Luxembourg, Spotify Technology S.A. (NYSE:SPOT) offers audio streaming subscription services. The one-month return of Spotify Technology S.A. (NYSE:SPOT) was -6.08%, and its shares gained 97.09% of their value over the last 52 weeks. On August 7, 2025, Spotify Technology S.A. (NYSE:SPOT) stock closed at $666.81 per share, with a market capitalization of $137.215 billion.

Artisan Mid Cap Fund stated the following regarding Spotify Technology S.A. (NYSE:SPOT) in its second quarter 2025 investor letter:

"Among our top Q2 contributors were Spotify Technology S.A. (NYSE:SPOT), Snowflake and Roblox. Spotify is a leading global audio streaming franchise with 675 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. Spotify reported another set of strong earnings results, including 10% growth in monthly active users and 15% revenue growth. A recent court ruling against Apple should also benefit Spotify as it can now offer direct subscription options and more competitive pricing by linking users to its website, which bypasses Apple’s 30% commission on in-app purchases. Spotify has already reported conversions from its free- to premium-tier service meaningfully increased among Apple users."

Spotify Technology S.A. (NYSE:SPOT) is in 25th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 106 hedge fund portfolios held Spotify Technology S.A. (NYSE:SPOT) at the end of the first quarter, which was 101 in the previous quarter.  While we acknowledge the potential of Spotify Technology S.A. (NYSE:SPOT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Spotify Technology S.A. (NYSE:SPOT) and shared the list of stocks Jim Cramer discussed. Baron Focused Growth Fund emphasized Spotify Technology S.A. (NYSE:SPOT) in its Q2 2025 investor letter, attributing its rise to strong fundamentals and the company’s resilience in a volatile macroeconomic climate. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.