Spotify (SPOT): JDP Capital Management’s Largest Position and Largest Contributor

JDP Capital Management, an investment management company, released its “Survivor & Thriver Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The beginning of 2025 marked one of the most challenging starts to a market year since the COVID outbreak. Following a decline of more than 20% in March and early April, the S&P 500 demonstrated one of the quickest V-shaped recoveries ever, regaining all of its losses by June. In this environment, the fund was up 19.2% in 2Q and 16.8% in the first half of 2005, outperforming the S&P 500’s 10.6% gain in 2Q and 6.2% gain in the first half, including dividends. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its second-quarter 2025 investor letter, JDP Capital Management highlighted stocks such as Spotify Technology S.A. (NYSE:SPOT). Headquartered in Luxembourg City, Luxembourg, Spotify Technology S.A. (NYSE:SPOT) offers audio streaming subscription services. The one-month return of Spotify Technology S.A. (NYSE:SPOT) was -2.30%, and its shares gained 106.18% of their value over the last 52 weeks. On August 12, 2025, Spotify Technology S.A. (NYSE:SPOT) stock closed at $689.35 per share, with a market capitalization of $141.853 billion.

JDP Capital Management stated the following regarding Spotify Technology S.A. (NYSE:SPOT) in its second quarter 2025 investor letter:

“Spotify Technology S.A. (NYSE:SPOT) – SPOT continues to be our largest position and has been the largest contributor to fund performance for the past two years. The stock was up 71.5% in the first half. After enduring 4 years of underperformance SPOT has delivered a 5.7x return or 27.5% annualized since we initiated the position 6.5 years ago.

The core of our Spotify thesis is that the spoken word (including music) is the most undervalued form of communication on the web, by a country mile. Spotify’s business model is to deliver an exceptional search and discovery user experience in exchange for ownership of your real-time behavioral data and a monthly fee for an ad-free Premium Tier.

Similar to YouTube and Meta, Spotify continues to demonstrate that owning consumer attention at scale can be more valuable than owning the content being consumed. While other platforms have been ultra successful at monetizing video, unlocking the value of audio has historically required a different approach. Spotify has made enormous progress in closing the monetization gap between audio and video but we are still very early on this journey.”

Jim Cramer Recommends Buying Spotify (SPOT) Shares During “Periodic Moments of Underperformance”

A person wearing headphones listening to an audio streaming service.

Spotify Technology S.A. (NYSE:SPOT) is in 25th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 106 hedge fund portfolios held Spotify Technology S.A. (NYSE:SPOT) at the end of the first quarter, which was 101 in the previous quarter.  While we acknowledge the risk and potential of Spotify Technology S.A. (NYSE:SPOT) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Spotify Technology S.A. (NYSE:SPOT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Spotify Technology S.A. (NYSE:SPOT) and shared Artisan Mid Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2025 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.