5 Cathie Wood Stocks That Can Rebound in 2023

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

YTD Share Price Decline as of June 28: 59.45%

Number of Hedge Fund Holders: 49

Spotify Technology S.A. (NYSE:SPOT) is a provider of audio streaming services worldwide, operating through Premium and Ad-Supported segments. Cathie Wood owns 4.3 million Spotify Technology S.A. (NYSE:SPOT) shares as of Q1 2022, worth $662.7 million, representing 2.76% of her total 13F holdings. She increased her hold in the company by 10% in Q1. The Spotify Technology S.A. (NYSE:SPOT) stock has fallen about 60% YTD as of June 28. 

On June 15, Wells Fargo analyst Steven Cahall upgraded Spotify Technology S.A. (NYSE:SPOT) to Equal Weight from Underweight and raised the price target to $124 from $101. The analyst observed that Spotify Technology S.A. (NYSE:SPOT)’s latest investor day pointed towards more profitable operations than his previous models. Driven by the strength in user and revenue growth, the analyst is willing to concede some margin expansion opportunity and allow management time to execute. The analyst’s Spotify Technology S.A. (NYSE:SPOT) estimates are moving up, in addition to his customer lifetime value projections.

Among the hedge funds tracked by Insider Monkey, Spotify Technology S.A. (NYSE:SPOT) was part of 49 public hedge fund portfolios, compared to 53 in the last quarter. Gabriel Plotkin’s Melvin Capital Management holds a significant stake in the company, comprising 1.5 million shares worth $233.2 million. 

Here is what Baron Focused Growth Fund has to say about Spotify Technology S.A. (NYSE:SPOT) in its Q1 2022 investor letter:

“We also added to our positions in Spotify Technology S.A. The company has large addressable markets with strong brands that should allow them to take significant market share over time. We believe SPOT is appropriately financed and should generate significant cash to continue investing in their businesses for further growth.”