Is Spotify Technology S.A. (SPOT) The Best Performing Large Cap Stock So Far in 2025?
We recently published a list of . In this article, we are going to take a look at where Spotify Technology S.A. (NYSE:SPOT) stands against other best performing large cap stocks so far in 2025.
The stock market had a chaotic start to the first quarter of 2025. The uncertain tariff policy, growing fears of a recession, and inflation sent the stock market to the worst quarterly performance since the 2022 bear market. On March 31, ClearBridge Investment released its commentary on the market performance. Portfolio Managers Erica Furfaro and Margaret Vitrano highlighted that the S&P 500 index declined 4.27%, whereas the growth-heavy NASDAQ and Russell 1000 Growth Index fell 10.42% and 9.97%, respectively.
Elaborating more on the quarterly market performance, the portfolio managers noted that the Russell Growth Index underperformed the Russell Value Index by more than 1,200 basis points indicating that while large-cap stocks were impacted, the growth sector took the major hit. Tariffs were only one of the headwinds affecting the performance and the overall backdrop also includes the launch of Chinese LLM DeepSeek which questioned the AI capital expenditure of various large and mega-cap stocks. This capital expenditure bubble infected the performance of other 'Magnificent Seven' to an extent that only one of the 'Mag Seven' companies could outperform the Russell 1000 Index.
Erica Furfaro and Margaret Vitrano noted that their Large Cap Growth ESG strategy performed better than the benchmark amidst all the uncertainty. Their strategy takes the Russell Growth Index as a benchmark. The managers noted that the strategy revolved around being underweight for the Mag Seven and the IT sector. They also highlighted that balancing the portfolio with strong stocks across IT, communication, and financial services also played a pivotal role in generating more relative returns.
The investment fund also noted moving towards a 'moving to the middle' approach, which refers to adjusting their portfolio to be less concentrated in any single sector and more balanced across different types of growth companies. Clearbridge has reduced its overweight position in healthcare and increased exposure to the IT sector, which was previously underweight. The fund believes this recalibration positions the portfolio for an economic slowdown. Lastly, Erica Furfaro and Margaret Vitrano noted that the first quarter witnessed the earnings growth broaden away from the Mag Seven and other large-cap stocks outside the big tech names delivered better earnings. They anticipate that, unless there is a recession, earnings growth from industrial and healthcare companies will begin to catch up with the technology sector in 2025.
To curate the list of 11 best-performing large-cap stocks so far in 2025, we used the Finviz stock screener and Yahoo Finance. Using the screener we aggregate a list of large-cap stocks that have performed well on a year-to-date. Next, we cross-checked the performance from Yahoo Finance and ranked the stocks in ascending order of their year-to-date performance. We have also added the market capitalization of each stock and the hedge fund sentiment as well, as of Q4 2024. Please note that the data was recorded on May 2, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points ().
A person wearing headphones listening to an audio streaming service.Spotify Technology S.A. (NYSE:SPOT) is the world's largest music streaming platform. The company provides a platform that allows users to access, discover, and manage a vast library of over 100 million songs, nearly 7 million podcast titles, and 350,000 audiobooks. The company offers two main tiers including the freemium subscription and the premium account.
On May 2nd, Loop Capital analyst Alan Gould raised the firm's price target on the stock from $435 to $550, while keeping a Hold rating on the shares. The analyst noted that while the company reported quarterly results reflecting above-expectation subscriptions, however, it missed the guidance on ad-supported revenues.
During the fiscal first quarter of 2025, Spotify Technology S.A. (NYSE:SPOT) grew its monthly active users by 10% year-over-year and premium subscribers by 12%. This took the total revenue up by 15% to reach $4.19 billion. Moreover, the gross profit also improved by 32% during the same time. Management noted that they have launched Partner Programs in the US, the UK, Canada, and Australia, that allow video podcast creators to monetize their content through multiple revenue streams. As a result, the video podcast consumption on the platform has increased by over 20%, and creator payouts have grown by 300% in only a month. Spotify Technology S.A. (NYSE:SPOT) is one of the best-performing large cap stocks so far in 2025.
JDP Capital Management stated the following regarding Spotify Technology S.A. (NYSE:SPOT) in its Q1 2025 investor letter:
'Spotify Technology S.A. (NYSE:SPOT) – Spotify remains our largest position. In the fourth quarter the company's free cash flow was up 123% over last year resulting from strong operating leverage that the market had not priced in the valuation. Spotify ended 2024 with 675 million subscribers between paid and ad supported. Spotify and YouTube are the primary beneficiaries of the mega trend shift from linear media to podcasting.
Overall, SPOT ranks 5th on our list of best performing large cap stocks so far in 2025. While we acknowledge the potential of SPOT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SPOT but that trades at less than 5 times its earnings, check out our report about this .
READ NEXT: and .
Disclosure: None. This article is originally published at .
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
25 minutes ago
- Yahoo
With 77% ownership of the shares, The Manitowoc Company, Inc. (NYSE:MTW) is heavily dominated by institutional owners
Institutions' substantial holdings in Manitowoc Company implies that they have significant influence over the company's share price 51% of the business is held by the top 13 shareholders Insiders have bought recently This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. If you want to know who really controls The Manitowoc Company, Inc. (NYSE:MTW), then you'll have to look at the makeup of its share registry. We can see that institutions own the lion's share in the company with 77% ownership. Put another way, the group faces the maximum upside potential (or downside risk). Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute. Let's take a closer look to see what the different types of shareholders can tell us about Manitowoc Company. Check out our latest analysis for Manitowoc Company Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. Manitowoc Company already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Manitowoc Company, (below). Of course, keep in mind that there are other factors to consider, too. Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Manitowoc Company. Our data shows that BlackRock, Inc. is the largest shareholder with 12% of shares outstanding. With 9.3% and 5.9% of the shares outstanding respectively, Front Street Capital Management, Inc. and The Vanguard Group, Inc. are the second and third largest shareholders. In addition, we found that Aaron Ravenscroft, the CEO has 1.0% of the shares allocated to their name. A closer look at our ownership figures suggests that the top 13 shareholders have a combined ownership of 51% implying that no single shareholder has a majority. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. We can report that insiders do own shares in The Manitowoc Company, Inc.. It has a market capitalization of just US$397m, and insiders have US$14m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling. The general public, who are usually individual investors, hold a 20% stake in Manitowoc Company. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. It's always worth thinking about the different groups who own shares in a company. But to understand Manitowoc Company better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Manitowoc Company you should be aware of, and 1 of them shouldn't be ignored. Ultimately the future is most important. You can access this free report on analyst forecasts for the company. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
25 minutes ago
- Yahoo
James River Group Holdings, Ltd. (NASDAQ:JRVR) is largely controlled by institutional shareholders who own 80% of the company
Given the large stake in the stock by institutions, James River Group Holdings' stock price might be vulnerable to their trading decisions The top 7 shareholders own 51% of the company Recent purchases by insiders Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. To get a sense of who is truly in control of James River Group Holdings, Ltd. (NASDAQ:JRVR), it is important to understand the ownership structure of the business. We can see that institutions own the lion's share in the company with 80% ownership. Put another way, the group faces the maximum upside potential (or downside risk). Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute. In the chart below, we zoom in on the different ownership groups of James River Group Holdings. Check out our latest analysis for James River Group Holdings Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. James River Group Holdings already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of James River Group Holdings, (below). Of course, keep in mind that there are other factors to consider, too. Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. James River Group Holdings is not owned by hedge funds. The company's largest shareholder is Gallatin Point Capital LLC, with ownership of 13%. T. Rowe Price Group, Inc. is the second largest shareholder owning 10% of common stock, and BlackRock, Inc. holds about 6.6% of the company stock. Furthermore, CEO Frank D'Orazio is the owner of 0.5% of the company's shares. We did some more digging and found that 7 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Shareholders would probably be interested to learn that insiders own shares in James River Group Holdings, Ltd.. In their own names, insiders own US$5.3m worth of stock in the US$268m company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling. With a 18% ownership, the general public, mostly comprising of individual investors, have some degree of sway over James River Group Holdings. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 1 warning sign for James River Group Holdings that you should be aware of. But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Inicia sesión para acceder a tu portafolio
Yahoo
25 minutes ago
- Yahoo
Caterpillar (NYSE:CAT) Is Increasing Its Dividend To $1.51
Caterpillar Inc. (NYSE:CAT) will increase its dividend on the 20th of August to $1.51, which is 7.1% higher than last year's payment from the same period of $1.41. This takes the annual payment to 1.6% of the current stock price, which is about average for the industry. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Unless the payments are sustainable, the dividend yield doesn't mean too much. However, Caterpillar's earnings easily cover the dividend. This means that most of its earnings are being retained to grow the business. The next year is set to see EPS grow by 28.0%. If the dividend continues on this path, the payout ratio could be 23% by next year, which we think can be pretty sustainable going forward. View our latest analysis for Caterpillar The company has a sustained record of paying dividends with very little fluctuation. Since 2015, the dividend has gone from $2.80 total annually to $5.64. This means that it has been growing its distributions at 7.3% per annum over that time. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios. Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. It's encouraging to see that Caterpillar has been growing its earnings per share at 17% a year over the past five years. A low payout ratio and decent growth suggests that the company is reinvesting well, and it also has plenty of room to increase the dividend over time. Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All of these factors considered, we think this has solid potential as a dividend stock. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. As an example, we've identified 1 warning sign for Caterpillar that you should be aware of before investing. Is Caterpillar not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
