5 Artificial Intelligence Stocks in Cathie Wood’s Portfolio

4. Spotify Technology S.A. (NYSE:SPOT)

Number of Hedge Fund Holders: 48

Spotify Technology S.A. (NYSE:SPOT) is a Swedish advertisement streaming and media services provider whose primary AI algorithm recommends new music through a process called collaborative filtering. As streaming already represents 83% of the recorded music sales in the U.S., Benchmark initiated its coverage on Spotify Technology S.A. (NYSE:SPOT) with a Buy rating and a $300 price target.

According to Insider Monkey’s data for Q3, 48 hedge funds tracked by Insider Monkey reported owning stakes in Spotify Technology S.A. (NYSE:SPOT), the same as in the previous quarter. These stakes hold a consolidated value of over $3.03 billion.

ARK Investment Management holds 4.6 million shares in Spotify Technology S.A. (NYSE:SPOT) in Q3, valued at over $1 billion. The company accounted for 2.49% of Cathie Wood’s portfolio. In Q3, the company reported solid growth of 75% in its advertisement revenue at 323 million euros.

Baron Funds mentioned Spotify Technology S.A. (NYSE:SPOT) in its Q3 2021 investor letter. Here is what the firm has to say:

“Spotify Technology S.A. is a leading digital music service available in 178 international markets, offering on-demand audio streaming through paid premium subscriptions as well as a free ad-supported model. Shares were down as engagement declined while economies reopened and pandemic restrictions were lifted. We continue to view Spotify as a long-term winner in music streaming with potential to go from 158 million paying subscribers today to over 250 million in four years, driven by its scalable core music product as well as its growing library of spoken word content.”