10 Best Stocks to Buy for the Next 5 Years

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1. Spotify Technology (NYSE:SPOT)

EPS Forward Long Term Growth (3-5 Year CAGR): 31.42%

Number of Hedge Fund Holders: 116

Spotify Technology (NYSE:SPOT) is one of the best stocks to buy for the next 5 years. On December 17, Citizens analyst Matthew Condon initiated coverage of Spotify with an Outperform rating and $800 price target. The firm remains bullish on Spotify due to the company’s evolution into a dominant, multi-format audio platform. The firm specifically points to the company’s underappreciated ability to raise subscription prices without losing its competitive edge as a key factor for future profitability.

On December 11, David Chiaverini from Jefferies maintained a Buy rating on Spotify, with a price target of $800.

Additionally, on December 9, Spotify announced the expansion of its music video beta to Premium subscribers in the US and Canada. This rollout allows millions of users to access a curated catalog of official music videos directly within the app on iOS, Android, desktop, and TV devices. By selecting a supported track and tapping the Switch to video toggle, fans can seamlessly transition from audio to video without losing their place in the song.

The move is backed by strong engagement data: Spotify found that users who discover a track via its music video are 34% more likely to stream it again and 24% more likely to save or share it the following week. The impact is even more pronounced among super listeners who increase their streaming of that artist by an average of 85% in the month following a video engagement.

Spotify Technology (NYSE:SPOT), together with its subsidiaries, provides audio streaming subscription services worldwide. It operates through two segments: Premium and Ad-Supported.

While we acknowledge the potential of SPOT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SPOT and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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