Artisan Partners, an investment management company, released its fourth-quarter 2025 investor letter for “Artisan Mid Cap Fund”.  A copy of the letter can be downloaded here. The Fund seeks to invest in companies that possess franchise characteristics, with strong earnings trajectories, and are trading at a discount to the estimated private market value. US equities ended a record year with robust fourth-quarter gains. The Fund’s Investor Class, ARTMX, delivered -0.44%, the Advisor Class, APDMX, delivered - ...

In Q4, revenue rose 5% year-over-year (YOY) to about $3 billion, even as comparable restaurant sales fell 2.5% and restaurant-level operating margin slipped to 23.4%. For full-year 2025, revenue increased 5.4% to $11.9 billion while adjusted EPS rose 4.5% to $1.17.Even after that pullback, Chipotle still trades at a premium, at roughly 33 times forward earnings versus a sector multiple near 17 times.Over the past 52 weeks, CMG stock is down 29%, but it has started to recover in 2026, up 1.5% year-to-date (Y ...

Core Viewpoint - Spotify Technology S.A. reported strong performance in Q4 2025, with revenue of €4.5 billion, a 7% year-over-year increase, and net profit of €1.17 billion, up 200% from the previous year, exceeding market expectations [1] Financial Performance - Quarterly revenue reached €4.5 billion, a 7% increase year-over-year [1] - Net profit was €1.17 billion, representing a 200% growth compared to the same period last year [1] - Earnings per share stood at €4.43, significantly above market expectations [1] - Monthly active users increased by 38 million, reaching a record 751 million, while paid subscribers rose to 290 million [1] - Gross margin improved to 33.1%, and operating profit exceeded expectations due to user growth and cost control measures [1] - The company forecasts Q1 2026 revenue at €6.6 billion, higher than analyst expectations, positioning 2026 as a "year of elevated ambition" [1] Stock Performance - Following the earnings report on February 10, 2026, the stock price closed at $476.02, a single-day increase of 14.75% [2] - The stock experienced a pullback, closing at $445.79 on February 12, 2026, but rebounded to $458.34 on February 13, 2026, with a single-day increase of 2.82% [2] - Over the past week (February 9 to 13, 2026), the stock had a price fluctuation of 8.45% and a trading range of 22.39%, indicating mixed market sentiment [2] Recent Events - On February 10, 2026, Spotify released its performance outlook following a management transition, with co-CEOs Gustav Söderström and Alex Norström succeeding founder Daniel Ek, who became Executive Chairman [3] - The company aims to enhance competitiveness through AI playlists, audiobooks, and video podcast collaborations [3] - Spotify has raised prices in markets like the U.S. to $12.99, which has not yet fully reflected in the financial report, indicating potential future revenue elasticity [3] Institutional Perspectives - On February 12, 2026, a technical analysis report set Spotify's target price range between $550 and $850, rating it as "strong buy," citing confidence in its audio platform strategy and margin improvement, while noting risks from competition and copyright costs [4] - Keybanc maintained an "overweight" rating on February 9, 2026, with a target price of $720, affirming the company's fundamental resilience [4]

Core Viewpoint - Spotify Technology S.A. is currently viewed as a strong investment opportunity, with analysts reaffirming positive ratings based on the company's impressive Q4 earnings and promising guidance for Q1 [1][2][3]. Group 1: Analyst Ratings and Price Targets - Bernstein SocGen Group analyst Ian Moore maintained an Outperform rating on Spotify with a price target of $650, citing the company's stellar performance [1][2]. - Benchmark also reiterated a Buy rating on Spotify, setting a higher price target of $760, describing the Q4 results as "an exceptionally clean quarter" [3]. Group 2: Q4 Performance Insights - Spotify's Q4 earnings results addressed concerns regarding average revenue per user, gross margin, and subscriber growth, which were previously under scrutiny [3]. - The stock experienced a 15% increase following the Q4 results, recovering partially from a decline in January attributed to competitive threats [2]. Group 3: AI and Industry Dynamics - Benchmark highlighted Spotify management's perspective that AI will lead to aggregation in the music industry, benefiting large platforms like Spotify that have data and distribution advantages [4]. - The company believes that AI-driven content creation will enhance the global audio catalog and improve its personalization, discovery, and monetization capabilities [4]. Group 4: Company Overview - Spotify Technology S.A. operates the world's largest audio streaming platform, providing music, podcasts, and digital content to hundreds of millions of users globally [5].

Company Performance - Spotify reported a 10% year-over-year revenue growth for 2025, reaching €17.236 billion, with a significant increase in net profit. However, Q4 revenue was €4.53 billion, growing only 7% year-over-year, indicating a slowdown compared to the previous quarters. The annual gross margin was 31.86%, which, despite being an improvement, fell short of some investors' expectations regarding cost optimization in the audio streaming sector [1][4] - The decline in revenue from the ad-supported business and sluggish growth in the North American market contributed to the weakening of the positive signals from the earnings report [1] Stock and Market Performance - On the day of the earnings report release, February 10, the stock price surged by 14.75%, followed by a further increase of 2.34% on February 11, resulting in a cumulative gain of nearly 17% over two trading days. However, profit-taking led to a stock price decline of 8.49% on February 12, with a trading volume of approximately $3.1 billion and a turnover rate of 3.35% [2] Industry and Risk Analysis - On February 12, the Nasdaq index fell by 2.03%, with technology stocks under pressure, particularly in the AI software sector. As a technology and media content platform, Spotify is susceptible to the overall sentiment in the tech sector. Concerns about AI tools potentially disrupting traditional content distribution models have intensified, leading to increased scrutiny of long-term growth prospects and subsequent sell-offs [3] - The depreciation of the US dollar against the euro negatively impacted revenue from the North American market. After adjusting for currency effects, the actual revenue growth rate was 13%, surpassing the nominal growth rate. The North American market faces intense competition from Apple Music and Amazon Music, prompting the company to consider price increases to maintain profitability, which may raise concerns about user retention [4]

Financial Data and Key Metrics Changes - The company reported consolidated revenue of $20.3 million for Q3 fiscal 2026, with a total of over $58 million in revenue for the nine months ending December 31, 2025 [4][14] - Adjusted EBITDA for Q3 was $2.6 million, contributing to a total of over $3.7 million for the audio division in the nine-month period [5][14] - The company posted a net loss of $4.1 million or 37 cents per diluted share for Q3 fiscal 2026 [14] Business Line Data and Key Metrics Changes - The audio division generated $52.2 million in revenue over nine months, with Q3 revenue of $18.6 million [5][14] - PodcastOne subsidiary achieved record revenue of $15.9 million and adjusted EBITDA of $2.8 million in Q3 [14][15] - Slacker subsidiary reported Q3 revenue of $2.8 million with an adjusted EBITDA of negative $0.1 million [14] Market Data and Key Metrics Changes - The company is trading at 60% of revenues, while the industry is trading over 3x revenues, indicating a significant undervaluation [6] - The B2B pipeline has grown over 30% in the last 120 days, with over 100 active enterprise opportunities [6][7] Company Strategy and Development Direction - The company is focused on expanding partnerships with major players like Amazon, Apple, and Tesla, aiming to launch three significant Fortune 500 partnerships [7][8] - A strategic shift towards owning intellectual properties and original content is underway, with over 15 original projects in the pipeline [8][9] - The company is evolving its leadership structure to enhance focus on B2B partnerships and AI initiatives [11][72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position for transformational growth, citing a strong B2B pipeline and improving industry dynamics [15][40] - The company anticipates reaching profitability by the end of the fiscal year, leveraging over $125 million in net operating loss carryforwards for tax efficiencies [5][6] - Management highlighted the importance of AI in enhancing personalization and optimizing monetization, driving B2B demand [10][73] Other Important Information - The company has reduced operating expenses by over 52% year-over-year and streamlined its workforce from 350 to 88 employees [4][5] - A share repurchase program is being expanded, reflecting confidence in the company's undervaluation [12] Q&A Session Summary Question: On the B2B business, can you elaborate on customization and options for customers? - Management noted that the company is uniquely positioned in the B2B space, leveraging AI for customization and offering competitive pricing [18][20] Question: What is the competitive landscape for content provision? - Management indicated that while some competition exists, the company's unique service offerings and flexibility provide a significant advantage [31][32] Question: How is the advertising revenue for Slacker's non-subscription customers progressing? - Management highlighted a robust advertising business across audio platforms and noted a partnership with DAX to enhance advertising offerings [25][26] Question: What is the timing for the 30 million subscriber deal? - Management stated that the deal is signed and expected to ramp up in the following year, with some revenue potentially starting this quarter [59][61] Question: What is the expected impact of Tesla user conversions on revenue? - Management confirmed that the conversion from ad-supported to paid subscriptions is expected to contribute significantly to revenue growth [67][68]

Core Viewpoint - Spotify's Q4 financial results exceeded market expectations, leading to a nearly 20% surge in its stock price, although it remains down nearly 20% from its year-to-date high [1]. Financial Performance - Spotify achieved a record gross margin of 33.1% in Q4, driven by its focus on audiobooks and high-margin podcasts [4]. - The company added 38 million new subscribers in Q4, marking the largest quarterly increase in its history [4]. - There is a notable increase in operating income, indicating that previous headwinds related to Swedish payroll taxes are now resolved [4]. Subscriber Growth and Market Position - Spotify's outlook suggests continued profitability with an expected increase to 759 million subscribers in the current quarter [5]. - The company is transitioning smoothly to new leadership under co-CEOs Gustav Soderstrom and Alex Norstrom [5]. Valuation and Investment Potential - Spotify shares are currently trading at a significant discount compared to its historical average and peer Netflix, with a price-to-sales (P/S) multiple of 4.37x versus Netflix's 7.68x [6]. - Wall Street maintains a "Strong Buy" consensus rating for Spotify, with a mean target price indicating potential upside of over 45% [7]. User Acceptance and Growth Potential - Spotify's user growth trajectory shows no signs of hitting a ceiling, and recent price hikes have been accepted by users [8].

Core Insights - Spotify's stock has rallied approximately 16% following a strong fourth quarter earnings report, beating both revenue and earnings expectations [1][3] - The company reported an 11% year-over-year increase in monthly active users and a 10% rise in premium subscribers [1] Financial Performance - Spotify's revenue increased by 10%, indicating strong growth in its subscriber base [8][10] - The company is seen as undervalued, with potential for further revenue growth through price increases and expansion into new content areas [4][10] Market Position and Strategy - Spotify is evolving from a music streaming service to a multimedia platform, expanding into audiobooks, podcasts, and live music ticketing [5][14] - The company has a significant number of audiobooks (500,000) and video podcasts (50,000), showcasing its diversification strategy [14][16] Subscriber Growth and Pricing Power - The growth in premium subscriptions is crucial for Spotify, with the company expected to continue raising prices without significant subscriber loss [6][11] - The pricing strategy is considered conservative, allowing room for future increases as Spotify expands its content offerings [11][12] Competitive Landscape - Spotify's partnership with Netflix is a distribution deal aimed at increasing visibility and audience reach, rather than a merger [16][18] - The competitive threat from platforms like YouTube is acknowledged, emphasizing the need for Spotify to innovate in advertising and content integration [19][21] Risks and Challenges - There are concerns regarding artist satisfaction, as many artists feel undercompensated for their streams, which could impact Spotify's growth and content acquisition strategies [22][23] - The integration of AI in content creation raises apprehensions among creatives, which could affect Spotify's relationships with artists [23]

Core Insights - Spotify Technology (NYSE: SPOT) is experiencing a significant increase in premarket trading following the release of a strong Q4 performance and an unexpectedly positive outlook for the current quarter [1] Financial Performance - The company reported a blockbuster Q4, indicating robust growth and strong financial results [1] Future Outlook - Spotify issued a surprisingly positive outlook for the current quarter, suggesting continued momentum and potential for further growth [1]

Core Insights - Spotify Technology S.A. reported a significant increase in profit for Q4, primarily due to revenue growth and higher finance income [1] - The company's shares surged over 14% in pre-market trading following the earnings report [1] Financial Performance - Profit before tax more than doubled to €1.021 billion from €499 million in Q4 2024 [1] - Net income attributable to owners rose to €1.174 billion, or €4.43 per share, compared to €367 million, or €1.76 per share, in the same quarter last year [2] - Revenue for the quarter increased by 7% to €4.531 billion from €4.242 billion year-on-year [2] - Operating income rose to €701 million from €477 million a year earlier [1] Additional Financial Metrics - Finance income increased to €349 million from €127 million last year [3] - The company recorded an income tax benefit of €153 million in Q4 [3] User Growth - Total Monthly Active Users (MAUs) grew by 11% year-on-year to 751 million [3] - Premium subscribers increased by 10% to 290 million [3] Future Projections - For Q1, the company expects revenue of €4.5 billion and total MAUs of 759 million [3] - Projected operating income for Q1 is €660 million [3] Stock Performance - Spotify shares closed at $414.84 on Monday, down 1.84% [3]