Spotify (SPOT) Fell Due to Weak Results and Muted Outlook

Janus Henderson Investors, an investment management company, released third third-quarter 2025 investor letter for its “Janus Henderson Global Sustainable Equity Fund”. A copy of the letter can be downloaded here. Global equities continued their strong rally in the third quarter, driven by loosening monetary policy and continued momentum in the AI growth story. The fund returned 2.95% in the quarter, compared to a 7.27% return for the MSCI World Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Janus Henderson Global Technology and Innovation 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 -1.04%, and its shares gained 25.51% of their value over the last 52 weeks. On December 23, 2025, Spotify Technology S.A. (NYSE:SPOT) stock closed at $579.39 per share, with a market capitalization of $119.293 billion.

Janus Henderson Global Sustainable Equity Fund stated the following regarding Spotify Technology S.A. (NYSE:SPOT) in its third quarter 2025 investor letter:

"The biggest relative detractors included audio-streaming service Spotify Technology S.A. (NYSE:SPOT), insurance company Intact Financial, and building products company Saint-Gobain. During the quarter, Spotify reported weak results and a more muted outlook, causing its share price to fall following a recent run of strong performance. Our investment thesis, however, is unchanged. We believe the company can harness multiple growth opportunities, including pricing structures, its premium “superfans” tier, and improvement in its ad-supported business, as well as potential expansion into new streaming sectors such as video. Spotify also introduced a range of new product features during the quarter, reinforcing its leadership as the dominant audio streaming platform. Spotify also continued to benefit from a shift in relative power in the music industry, which we think should translate into better business economics."

Spotify Technology S.A. (NYSE:SPOT) is in the 25th position on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 116 hedge fund portfolios held Spotify Technology S.A. (NYSE:SPOT) at the end of the third quarter, up from 111 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 best large cap stocks to invest in. 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.