Should You Hold Spotify Technology S.A. (SPOT)?

Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equity markets continued their strength in the third quarter, ending the period with double-digit year-to-date gains. In the quarter, the fund’s Investor Class fund ARTMX returned 8.80%, Advisor Class fund APDMX posted a return of 8.80%, and Institutional Class fund APHMX returned 8.83%, compared to a 2.78% return for the Russell Midcap Growth Index. The significant outperformance was led by holdings in the health care sector. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-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 -3.35%, and its shares gained 83.89% of their value over the last 52 weeks. On October 14, 2025, Spotify Technology S.A. (NYSE:SPOT) stock closed at $683.51 per share, with a market capitalization of $140.651 billion.

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

"Among our Q3 detractors were Wingstop, Spotify Technology S.A. (NYSE:SPOT) and Atlassian. Spotify is a leading audio streaming platform, well positioned to increasingly monetize its dominant share in global music distribution and discovery. Key levers, including pricing, advertising and tiered premium subscriptions, are poised to drive a multiyear profit cycle, in our view. The upcoming launch of a super-premium tier represents a meaningful catalyst, while strategic investments in podcasts, audio books and video could unlock further growth opportunities and diversify the company away from music, where large music labels own the content."

Spotify Technology S.A. (NYSE:SPOT) is in 25th position on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 111 hedge fund portfolios held Spotify Technology S.A. (NYSE:SPOT) at the end of the second quarter, up from 106 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 everyone’s talking about as AI investments continue. In addition, please check out our hedge fund investor letters Q3 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.