Recently, a list of the 10 Best Communication and Media Stocks To Buy According to Hedge Funds was compiled, including a closer look at Spotify Technology S.A. (NYSE:SPOT) in comparison to other communication and media stocks. According to PwC’s Global Telecom Outlook, telecommunications companies (telcos) are facing challenges in sustaining growth due to increasing demand for essential services, particularly driven by video traffic which is expected to nearly triple by 2027. In the business-to-consumer sector, telcos are experiencing heightened demand for data-intensive services, primarily video content, with an anticipated increase in cellular data consumption and the rise of gaming and virtual reality content connections.
Regarding Spotify Technology S.A. (NYSE:SPOT), the company announced plans to launch a new premium subscription tier offering high-fidelity audio quality and new tools for playlist creation and music library management. The company’s efforts to introduce new features have led to an increase in hedge fund investment, with 77 hedge funds holding stakes in Spotify Technology S.A. in the first quarter of 2024. The combined value of these stakes is approximately $4.04 billion, with GQG Partners being the largest stakeholder.
Baron Asset Fund, in its first quarter 2024 investor letter, expressed positivity towards Spotify Technology S.A., citing the company’s product leadership and market opportunities. The fund highlighted Spotify’s user experience, improved profitability, and innovative product roadmap as factors contributing to its potential for reaching more than 1 billion monthly active users and continued profitability. Overall, SPOT ranks 3rd on the list of best communication and media stocks to buy according to hedge funds, with a focus on AI stocks holding promise for higher returns within a shorter timeframe.
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