Baron Funds, an investment management company, published his letter as an investor in the first quarter of “Focus Growth Fund”. A copy of the letter can be downloaded here. The Q1 was a difficult start to the year. The fund decreased by 7.95% (institutional shares) during the quarter, compared to the yield of 10.80% of the Russell 2500 growth index (The Benchmark). Please spend time to check the 5 best assets of the fund to find out more about their best bets for 2025.
In his letter of investors in the first quarter of 2025, Baron Focus Growth Fund highlighted actions such as Spotify Technology SA (NYSE:PLACE). Based in Luxembourg City, Luxembourg, Spotify Technology SA (NYSE: Spot) offers audio streaming subscription services. The yield of one month of Spotify Technology SA (NYSE: Spot) was 15.42% and its shares gained 119.93% of their value in the last 52 weeks. On May 6, 2025, the Spotify Technology SA shares (NYSE: Spot) closed $ 632.85 per share with a market capitalization of $ 134.469 billion.
Baron Focused Growth Fund indicated the following concerning Spotify Technology SA (NYSE: spot) in his letter of investor T1 2025:
“Spotify Technology SA (NYSE: Spot) is one of the main global digital music services offering audio streaming on demand via paid premium subscriptions and a model supported by advertising. The actions have been increasing, once again attributable to another impressive beat in raw margins and a healthy increase in operating margins. Spotify was on the path of the way to structurally increase gross margins, helped by its market promotions of high margin artists, a growing contribution of podcasts and structural investments in advertising. Users continued to grow at a two -digit rate despite price increases. Spotify has also continued to innovate on the product side, calling for 2025 “The year of accelerated execution”, with priorities in improving advertising, transmission in video, development of a super premium level and market share. We consider Spotify as a long -term winner in musical streaming with potential to reach more than 1 billion monthly active users. “”
A person wearing headphones listening to an audio streaming service.
Spotify Technology SA (NYSE: Spot) is in 25th position on our list of 30 most popular stocks among hedge funds. According to our database, 101 hedge fund portfolios held Spotify Technology SA (NYSE: Spot) at the end of the fourth quarter against 98 in the third quarter. At T1 2025, Spotify Technology SA (NYSE: Spot) generated a total income of $ 4.2 billion, reflecting growth from one year to the other of 15% on a constant currency. While we recognize the potential of Spotify Technology SA (nyse: spot) as an investment, our conviction lies in the conviction that AI actions are more promising for the higher yield provision and doing it within a shorter period. If you are looking for a stock of AI which is as promising as Nvidia but which is negotiated within 5 times its income, consult our report on the Stock ai the cheapest.