Gary Vaynerchuk Stock Portfolio: 5 Stocks to Consider

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

Number of Hedge Fund Holders: 48    

Vaynerchuk hosts a podcast called The GaryVee Audio Experience that is featured on the Spotify Technology S.A. (NYSE:SPOT) platform. He has also invested in internet firms with very similar profiles to Spotify. In a bog post last year, he outlined why he believed that attention was always monetized, with big businesses willing to pay top dollar for it. In August, the company had announced that it would let podcasters on the platform charge listeners up to $150 per month in a shift towards a content-specific subscription-based model. 

On September 7, KeyBanc analyst Justin Patterson had upgraded Spotify Technology S.A. (NYSE:SPOT) stock to Overweight from Sector Weight with a price target of $340, noting that the industry dynamics for the firm appeared extremely favorable. 

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Tiger Global Management LLC is a leading shareholder in Spotify Technology S.A. (NYSE:SPOT) with 3.1 shares worth more than $870 million. 

In its Q4 2020 investor letter, Guardian Fund, an asset management firm, highlighted a few stocks and Spotify Technology S.A. (NYSE:SPOT) was one of them. Here is what the fund said:

“At the current share price, Spotify basically only represents a fraction of the value they will be able to unlock in the growing market of audio entertainment. The key for Spotify is to change a variable cost base into a fixed cost base just like Netflix has. As the market share of the big labels, measured by the daily hours of engagement of the big labels, is declining, Spotify will be able to adjust its business model and create enormous operational leverage meaning that profitability will grow faster than expenses.

The music catalogue is not the business model. The value lies in the machine learning that drives discovery and engagement, the original content from people like Michelle Obama, Kim Kardashian, and Joe Rogan, the data analytics and distribution for artists, the direct and social relations artists can have with fans through music and videos. We believe that Spotify will be worth at least five times more in 2030.”