Here’s Why You Should Consider Buying Spotify (SPOT) Shares

Altron Capital Management, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. The S&P500 had a return of 11.0% in the fourth quarter, bringing the total return for 2021 to 28.7%. The firm’s portfolios have underperformed this quarter, but are taking this opportunity to buy more into some of its current positions. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Altron Capital Management, in its Q4 2021 investor letter, mentioned Spotify Technology S.A. (NYSE:SPOT) and discussed its stance on the firm. Founded in 2006, Spotify Technology S.A. (NYSE:SPOT) is a Stockholm, Sweden-based music streaming company with a $27.2 billion market capitalization, and is currently spearheaded by its CEO, Daniel Ek. Spotify Technology S.A. (NYSE:SPOT) delivered a -39.63% return since the beginning of the year, while its 12-month returns are down by -49.40%. The stock closed at $141.28 per share on April 08, 2022.

Here is what Altron Capital Management has to say about Spotify Technology S.A. (NYSE:SPOT) in its Q4 2021 investor letter:

“Spotify is now the largest podcast platform by listeners in the United States. Its third-quarter advertising revenue grew 75% year-over-year and premium subscriber revenue also jumped 22%. We believe the investments into podcasting and growing the advertising side of its business provide a long runway for driving incremental high-margin revenue and ultimately share price. The pre-pandemic radio advertising market in North America alone was over USD 18 billion even though traditional radio listening has been in decline for years. Eventually, we see a good share of this advertising spend being reallocated toward digital streaming services, where Spotify will be a major beneficiary.”

Copyright: dennizn / 123RF Stock Photo

Our calculations show that Spotify Technology S.A. (NYSE:SPOT) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Spotify Technology S.A. (NYSE:SPOT) was in 53 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 48 funds in the previous quarter. Spotify Technology S.A. (NYSE:SPOT) delivered a -36.81% return in the past 3 months.

In February 2022, we also shared another hedge fund’s views on Spotify Technology S.A. (NYSE:SPOT) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.