Spotify Technology S.A. (SPOT): Evaluating Cash Flow Generation Potential vs. Current Share Price

In its third-quarter 2025 capitalist letter, TCW Concentrated Large Cap Growth Fund highlighted stocks specified arsenic Spotify Technology S.A. (NYSE:SPOT). Headquartered successful Luxembourg City, Luxembourg, Spotify Technology S.A. (NYSE:SPOT) offers audio streaming subscription services. The one-month instrumentality of Spotify Technology S.A. (NYSE:SPOT) was -1.03%, and its shares gained 27.06% of their worth implicit the past 52 weeks. On December 24, 2025, Spotify Technology S.A. (NYSE:SPOT) banal closed astatine $586.57 per share, with a marketplace capitalization of $120.771 billion.

TCW Concentrated Large Cap Growth Fund stated the pursuing regarding Spotify Technology S.A. (NYSE:SPOT) successful its 3rd 4th 2025 capitalist letter:

"Spotify Technology S.A. (NYSE:SPOT) (SPOT; Communication Services; 1.21%**) – Headquartered successful Sweden, Spotify is the starring audio streaming subscription work with a assemblage of astir 700 cardinal monthly progressive users, and implicit 275 cardinal paying subscribers. The institution controls ~1/3 of the planetary euphony streaming market, providing SPOT with standard to negociate with euphony labels during pricing negotiations. The institution manages its concern successful 2 segments: premium (~90% of revenues) and ad-supported (~10% of revenues). After not raising prices for implicit a decade, the institution has precocious begun to instrumentality terms with constricted interaction to lawsuit churn. We judge SPOT has galore levers to propulsion to accelerate growth, including adding caller users, converting ad-supported users to premium subscribers, and terms increases. We are attracted to the company’s standard successful a secularly increasing marketplace and judge the existent stock terms does not adequately bespeak the longer-term currency f debased procreation imaginable of the business."

Spotify Technology S.A. (NYSE:SPOT) is successful the 25th presumption connected our database of 30 Most Popular Stocks Among Hedge Funds. According to our database, 116 hedge money portfolios held Spotify Technology S.A. (NYSE:SPOT) astatine the extremity of the 3rd quarter, up from 111 successful the erstwhile quarter. While we admit the imaginable of Spotify Technology S.A. (NYSE:SPOT) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.