Billionaire Investor Adds Spotify, Doubles Down On Live Nation-Is He Seeing A Different Entertainment Cycle?

Hedge fund billionaire Daniel Loeb increased his exposure in the entertainment industry at Third Point LLC in the fourth quarter of FY25.

The investor opened a new position in Spotify Technology (NYSE:SPOT), acquiring 100,000 shares in the quarter.

Also, the fund boosted its position in Live Nation Entertainment, Inc. (NYSE:LYV) to 1.73 million shares from 1.35 million shares in the third quarter of 2025.

Live Nation: Recent Key Events

• A report suggested that the company reached a settlement with the DOJ in its antitrust case brought by the federal government. A senior Justice Department official stated that Ticketmaster will be barred from using pricing, technology, or other methods to limit venue access.
• As per the agreement, amphitheater exclusivity with Live Nation will be capped at 50%, while Ticketmaster will provide a standalone ticketing system. Live Nation will also allow third parties, such as SeatGeek and StubHub, to use its technology. Service fees at company-controlled amphitheaters will be capped at 15%, and approximately 13 amphitheaters will be divested.
• Live Nation reported fourth-quarter revenue of $6.31 billion, beating analyst estimates of $6.11 billion and a loss of 96 cents per share, beating estimates for a loss of $1.06 per share.
• The company expects sponsorship-adjusted operating income growth to be heavily driven by venue portfolio expansion and global festivals in 2026.
• Several analysts raised the price forecast on the stock. Maintaining a Buy rating, B of A Securities raised the price forecast from $170 to $180, and UBS increased it from $164 to $181.

Spotify: Recent Key Events

• Spotify reported fourth-quarter earnings of $5.16 per share, surpassing the consensus of a $2.95 profit and revenue of $5.28 billion (4.53 billion euros), ahead of projections of $5.16 billion.
• For the first quarter of 2026, Spotify expects revenue of 4.50 billion euros, versus the analyst consensus forecast of 4.57 billion euros.
• The company expects total Premium subscribers to reach 293 million, implying roughly 3 million net new subscribers during the quarter.
• Spotify earlier announced price increases for users in the U.S., bringing the cost of a single subscription up by a dollar to $13 a month.
• With two co-CEOs — Söderström and Alex Norström — at the helm, Spotify opted against splitting the organization into separate power centers. Instead, leadership now runs as a single, unified decision-making body.
• The co-CEOs added that the operational shift has been underway for more than two years, contributing to 17% compounded revenue growth, 20% gross profit growth, and a significant expansion in operating margin.

SPOT: Technical Analysis & ETF Exposure

Spotify is currently trading at $554.38, showing a decline of 1.91% during Monday’s session. This movement places the stock 1.8% below its 100-day SMA of $566.40 and 12.1% below its 200-day SMA of $632.29, indicating some bearish sentiment in the longer term.

However, it remains 14.5% above its 20-day SMA of $485.35, suggesting some resilience in the shorter term. Over the past 12 months, Spotify has seen a gain of 13.68%, with the stock trading closer to its 52-week low of $405.00 than its high of $785.00.

Top ETF Exposure:

• iShares MSCI Sweden ETF (NYSE:EWD): 8.14% Weight
• Baron Technology ETF (NASDAQ:BCTK): 3.88% Weight
• SPDR FactSet Innovative Technology ETF (NYSE:XITK): 1.61% Weight

LYV: Technical Analysis & ETF Exposure

Currently, Live Nation is trading 5.7% above its 20-day simple moving average (SMA) and 13.5% above its 100-day SMA, indicating a strong short-term trend. Over the past 12 months, shares have increased 34.59%, positioning the stock closer to its 52-week highs than lows.

Top ETF Exposure

• The Communication Services Select Sector SPDR Fund (NYSE:XLC): 4.56% Weight
• Invesco Leisure and Entertainment ETF (NYSE:PEJ): 5.25% Weight
• Invesco S&P 500 Equal Weight Communication Services ETF (NYSE:RSPC): 4.81% Weight

Image created using artificial intelligence via Midjourney.