Spotify Technology S.A. (SPOT, Financial) is a leading global digital music service offering on-demand audio streaming through paid premium subscriptions as well as a free ad-supported model. Shares were down as second quarter revenues were negatively impacted by a pandemic-related pullback in advertising spend. We continue to view Spotify as a long-term winner in music streaming. It has potential to grow from 138 million paying subscribers to over 250 million in four years. This growth will be driven by its scalable core music product and expanding library of spoken-word content.
From Ron Baron (Trades, Portfolio)'s Baron Partners Fund third-quarter 2020 shareholder letter.
