Lone Pine’s Non-AI Strategy Falters: 10 Non-AI Stocks Weighing Down Stephen Mandel’s 2026 Returns

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

Lone Pine Capital’s Stake: $10 Million

YTD Decline in Share Price: 15%

Spotify Technology S.A. (NYSE:SPOT) is a relatively recent addition to the 13F portfolio of Lone Pine Capital. The fund first disclosed a stake in the company in the first quarter of 2024. This position comprised just under 1.7 million shares. By the fourth quarter of 2024, the fund had trimmed this stake down to under a million shares, before it was sold off completely. A new position in the stock was opened in the fourth quarter of 2025 consisting of more than 17,000 shares. The firm provides audio streaming subscription services worldwide. It offers online and offline streaming access to a catalog of music and podcasts, including video, lossless music, and audiobooks in select markets through subscription offerings primarily sold directly.

Spotify Technology S.A. (NYSE:SPOT) management has branded 2026 as the Year of Raising Ambition, a signal that hedge funds have embraced. Following record performance in 2025, Spotify is now prioritizing operating income over raw user growth. Institutional investors are piling in ahead of the late April earnings call, where the company is expected to report €660 million in operating income and a record 32.8% gross margin. Analysts from Benchmark and Guggenheim have noted that recent price hikes from the company are expected to drive significant growth in Average Revenue Per User (ARPU) throughout 2026 without causing a significant spike in subscriber cancellations.

While we acknowledge the potential of SPOT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SPOT and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see Lone Pine’s Non-AI Strategy Falters: 5 Non-AI Stocks Weighing Down Stephen Mandel’s 2026 Returns.

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