Billionaire Investors Are Dumping Apple for a New Tech Favorite
Hey everyone, big moves are happening on Wall Street, and if you’re following the stock market, this is something you need to hear. Apple, the tech giant we all know and love, is facing a bit of turbulence. After years of unstoppable growth, billionaire investors are now offloading their Apple shares and moving their money into a new favorite—Spotify. That’s right, the streaming giant is stealing the spotlight as hedge funds reallocate billions into its stock. Let’s break it all down.
Apple (NASDAQ :AAPL ) has had a rough start to 2025. While last year saw double-digit gains across the market, this year, uncertainty and economic jitters are shaking things up. Inflation concerns, global trade tensions, and slowing growth in consumer tech are all weighing on Apple’s performance. So far this year, Apple’s stock has dropped about 10%, and hedge funds are taking notice. Investors like Andreas Halvorsen of Viking Global Investors and Terry Smith at Fundsmith have dumped millions of Apple shares, signaling a shift in sentiment.
The main issue? Apple’s growth is slowing. In its fiscal first quarter, iPhone sales dipped by 1% to $69.14 billion, largely due to weaker demand in China. On top of that, Apple’s artificial intelligence rollout, dubbed Apple Intelligence, has been delayed, with major features now expected in 2026. And while Apple remains a powerhouse, some investors think its stock valuation—trading at 36 times earnings—is simply too high for the current rate of growth.
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So, where’s the money going instead? A lot of it is flowing into Spotify (NYSE :SPOT ). The streaming platform is having a breakout moment, with its stock already up 26% this year after a massive 141% surge in 2024. Why the excitement? Spotify’s user base is growing fast—monthly active users are up 12% to 675 million, and its subscriber count has climbed to 263 million. Most importantly, Spotify is finally profitable, something that has been a long time coming for the company.
One big factor driving Spotify’s success is its use of AI. Personalized playlists and smart advertising tools are helping increase user engagement and monetization. This is a huge deal because AI-driven innovation is where big investors are placing their bets. Unlike Apple, which is still figuring out its AI strategy, Spotify is already seeing real benefits from its investments in machine learning and data-driven personalization.
Another reason investors are turning to Spotify? It’s relatively immune to the trade wars and inflation risks that are making Apple and other consumer tech stocks look shaky. Spotify operates on a low-cost, scalable model that isn’t dependent on hardware sales or supply chain stability. That makes it a safer bet in an uncertain economic climate.
Despite Spotify’s rise, Apple is still Apple. Some analysts believe that a new iPhone cycle or stronger service revenue could reignite growth. But for now, big-money investors are shifting their bets. With a lower valuation and strong momentum, Spotify is looking like the tech stock to watch in 2025.
So, what do you think? Is Apple just going through a rough patch, or are investors right to jump ship? And is Spotify really the next big thing in tech? Let’s discuss!
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