Is Spotify Technology S.A. (SPOT) a High-Growth Stock?

Baron Funds, an investment management company, released its “Baron Partners Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. Through the first nine months of the year, the fund modestly outperformed the Russel Midcap Growth Index. The last quarter caused the fund’s absolute and relative annual performance to be meaningfully lower than its long-term average. The fund declined 19.94% in the fourth quarter compared to the Russell Midcap Growth Index’s 6.90% return. For the calendar year, the fund returned -42.41% compared to a -26.72% return for the Index. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Baron Partners Fund highlighted stocks like Spotify Technology S.A. (NYSE:SPOT) in the Q4 2022 investor letter. Based in Luxembourg, Luxembourg, Spotify Technology S.A. (NYSE:SPOT) is an audio streaming service provider. On February 21, 2023, Spotify Technology S.A. (NYSE:SPOT) stock closed at $120.35 per share. One-month return of Spotify Technology S.A. (NYSE:SPOT) was 20.31%, and its shares lost 16.52% of their value over the last 52 weeks. Spotify Technology S.A. (NYSE:SPOT) has a market capitalization of $23.278 billion.

Baron Partners Fund made the following comment about Spotify Technology S.A. (NYSE:SPOT) in its Q4 2022 investor letter:

“Spotify Technology S.A. (NYSE:SPOT) is a leading global digital music service offering on-demand audio streaming through paid premium subscriptions and an ad-supported model. Shares of Spotify were down on weakness in the company’s fourth quarter gross margin guide. We still view Spotify as a long-term winner in music streaming with potential to reach more than one billion active monthly users. Subscriber additions remain strong, price increases seem likely, and cost discipline has become a bigger focus.”

Photo by Alexander Shatov on Unsplash

Spotify Technology S.A. (NYSE:SPOT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held Spotify Technology S.A. (NYSE:SPOT) at the end of the fourth quarter which was 57 in the previous quarter.

We discussed Spotify Technology S.A. (NYSE:SPOT) in another article and shared the list of tech stocks to sell according to Cathie Wood. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

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