Artisan Partners, an investment management company, recently released its fourth-quarter 2025 investor letter for the Artisan Mid Cap Fund. The Fund focuses on investing in companies with franchise characteristics, strong earnings trajectories, and trading at a discount to estimated private market value. Despite a record year for US equities, the Fund’s Investor Class delivered -0.44%, the Advisor Class delivered -0.37%, and the Institutional Class delivered -0.35% in the fourth quarter compared to -3.70% for the Russell Midcap® Growth Index. Information technology and health care sectors performed well during the quarter, contributing to the Fund’s performance.
One of the highlighted stocks in the fourth-quarter 2025 investor letter is Spotify Technology S.A. (NYSE:SPOT). Spotify is a leading audio streaming subscription service provider that monetizes through paid premium subscriptions and an ad-supported model. As of February 20, 2026, Spotify’s stock closed at $490.60 per share, with a one-month return of -6.79% and a 20.58% loss over the past twelve months. The company has a market capitalization of $98.073 billion.
In the investor letter, Artisan Mid Cap Fund shared insights on Spotify Technology S.A. The company is seen as well-positioned to monetize its dominant share in global music distribution and discovery through pricing, advertising, and tiered premium subscriptions. Strategic investments in podcasts, audiobooks, and video content diversify the business beyond music. Despite a decline in shares during the quarter due to near-term advertising weakness, Spotify delivered a strong quarter with beats on users, revenue, and margins.
According to the Fund, Spotify Technology S.A. is among the top detractors in the fourth quarter, along with other companies. Despite this, the Fund remains optimistic about Spotify’s future growth potential and its ability to capitalize on various revenue streams within the audio streaming industry.
Spotify Technology S.A. is also recognized as the 25th most popular stock among hedge funds, with 120 hedge fund portfolios holding shares at the end of the fourth quarter. While the company shows promise as an investment, some AI stocks may offer greater upside potential with less downside risk. Investors looking for undervalued AI stocks can explore opportunities in the market to maximize their investment returns.
Overall, Artisan Partners’ investment in Spotify Technology S.A. reflects confidence in the company’s ability to innovate and capture market opportunities in the audio streaming industry. As the company continues to expand its offerings and improve monetization strategies, investors may see long-term growth potential in Spotify’s stock.
