Spotify Technology S.A. (SPOT, Financial) is a leading global digital music service offeringon-demand audio streaming through paid premium subscriptions and an ad-supported model. Shares of Spotify were down on weakness in the company’s fourth quarter gross margin guide. We still view Spotify as a long-term winner in music streaming with potential to reach more than one billion active monthly users. Subscriber additions remain strong, price increases seem likely, and cost discipline has become a bigger focus.
From Ron Baron (Trades, Portfolio)'s Baron Focused Fund fourth-quarter 2022 letter.
