Goldman Sachs recently published its list of “Shared Favorites” – a basket of stocks that appear most frequently among top investment houses and analysts. These companies, which span technology, financial services, industrials, and digital infrastructure, have all delivered positive year-to-date returns, many of them well above the broader market. The diversity of the list illustrates how investors are positioning themselves in 2025: balancing between high-growth digital innovators and established companies with strong business foundations. The key question is whether these impressive gains will continue, or if valuations have already stretched to their limits.

Quantitative Overview: Breaking Down the Numbers

According to the data, seven companies make up Goldman’s favorites list. Spotify (SPOT) has been the standout performer, climbing 57% year-to-date and trading at around $692.99 per share. AppLovin (APP), a software and advertising technology platform, surged 38.3% to $441.68. Charles Schwab (SCHW), the U.S. brokerage giant, rose 30.1% and is priced at $95.83. CRH, a global building materials company headquartered in Ireland, advanced 22.1% to $113.33. Meanwhile, financial powerhouses Mastercard (MA) and Visa (V) delivered more modest returns of 13.1% and 10.7%, with share prices at $598.96 and $350.04 respectively. Finally, Vertiv Holdings (VRT), a key player in data center infrastructure, gained 10% to $125.97.

For context, the S&P 500 is up roughly 17% so far this year, meaning that most of these names have significantly outperformed the broader market. This suggests that institutional investors are not only betting on these companies but also that they are being rewarded for capturing key secular trends such as digital adoption, financial resilience, and infrastructure expansion.

Technology and Digital Services: Spotify and AppLovin in the Spotlight

Among the group, Spotify and AppLovin stand out as the true growth leaders. Spotify has long been viewed as a pioneer in digital streaming, but in 2025 it has entered a new phase. After years of prioritizing user growth and content investment, the company is now proving it can drive profitability through advertising and subscription revenue. The 57% year-to-date gain reflects a strong vote of confidence from investors who believe Spotify is finally delivering on its long-term potential.

AppLovin, while less of a household name, has become a critical force in the app economy. Its technology enables app developers to optimize advertising and monetization strategies, helping them scale profitably. The 38.3% surge in its stock price demonstrates that investors are keenly aware of the enormous opportunity in mobile advertising, especially as usage continues to shift toward smartphones and in-app ecosystems. AppLovin exemplifies the type of company that thrives behind the scenes, providing infrastructure for the digital economy much like Amazon Web Services has done for cloud computing.

Financial Services: Visa, Mastercard, and Charles Schwab

The financial sector names on Goldman’s list show a split between mature incumbents and more dynamic players. Visa and Mastercard are two of the most dominant networks in global payments. Their modest gains of 10.7% and 13.1% year-to-date highlight their stability. These companies benefit from consistent transaction growth worldwide, but they face challenges as fintech rivals emerge and regulators scrutinize interchange fees and market dominance. Still, their entrenched position in the financial system makes them steady performers.

Charles Schwab, on the other hand, has shown remarkable resilience. Its 30.1% rise this year reflects investor optimism after a difficult period in 2023, when declining interest income pressured margins. Schwab has rebounded thanks to higher trading activity, strong inflows into investment accounts, and improved investor sentiment. As one of America’s largest brokers, Schwab has successfully navigated shifts in the retail investing landscape, adapting its fee structures and platforms to maintain leadership in a highly competitive industry.

Industrials and Infrastructure: CRH and Vertiv

Moving beyond finance and digital services, Goldman’s list also includes companies that benefit from long-term structural trends in the real economy. CRH, the Irish building materials giant, has gained 22.1% this year. The company has positioned itself to take advantage of the U.S. and European infrastructure booms, where governments are investing heavily in rebuilding roads, bridges, and other core assets. This secular support provides visibility and stability, making CRH an attractive pick for investors seeking exposure to industrial growth tied to public policy.

Vertiv Holdings has also earned its spot on the list, though its 10% gain is more modest. Vertiv provides mission-critical infrastructure for data centers, including cooling systems, power management, and IT support. With the explosion of artificial intelligence, cloud computing, and digital services, the demand for data processing capacity is skyrocketing. Vertiv’s role in enabling this transformation makes it strategically important. While the stock’s growth lags some of the more high-flying names, its position in the digital infrastructure value chain suggests strong long-term potential.

Contrasts Between Growth and Stability

What becomes clear when examining Goldman’s list is the divergence between high-growth digital disruptors and established, stable companies. Spotify and AppLovin represent the new wave of growth – fast-moving, consumer-facing, and highly innovative. Their valuations have expanded dramatically as investors anticipate future profitability. By contrast, Visa, Mastercard, and Schwab embody financial resilience and market dominance, appealing to investors who prefer steady compounding over explosive growth.

CRH and Vertiv straddle the line between the two camps, offering exposure to physical and digital infrastructure. These are not speculative growth stories but rather long-term plays on foundational trends that are unlikely to reverse. Together, this basket reflects a balanced strategy that combines immediate momentum with defensive anchors.

Strategic Takeaways: What Does Goldman’s List Reveal?

Strategically, Goldman Sachs’ “Shared Favorites” list highlights three major themes in today’s market. First, investors are increasingly drawn to digital platforms that are scaling globally, as seen with Spotify and AppLovin. Second, financial incumbents remain indispensable, even if their growth rates are more modest. Visa and Mastercard in particular benefit from entrenched networks that are difficult for competitors to replicate. Third, infrastructure – both physical, through CRH, and digital, through Vertiv – is seen as a backbone for economic growth in the AI-driven era.

However, there are risks. The valuations of companies like Spotify are already elevated, and any disappointment in earnings could trigger sharp corrections. Similarly, regulatory pressure on payment giants may erode profitability over time. Meanwhile, infrastructure companies are exposed to cyclical slowdowns if global growth falters. Investors must therefore balance enthusiasm for long-term themes with caution about short-term volatility.

Conclusion and Forward Outlook

Goldman Sachs’ “Shared Favorites” list provides a valuable snapshot of how institutional investors are allocating capital in 2025. It reflects the dual nature of today’s markets: optimism about digital innovation on one hand, and the need for stable financial and industrial exposure on the other. The standout performance of Spotify and AppLovin shows how markets reward companies that are delivering both growth and a pathway to profitability. At the same time, the presence of Visa, Mastercard, Schwab, CRH, and Vertiv underscores that stability, scale, and infrastructure remain central pillars of portfolio construction.

Looking ahead, these stocks face a critical test. Can they sustain momentum in the face of macroeconomic uncertainty, regulatory scrutiny, and competitive pressures? If they can, Goldman’s “Shared Favorites” could remain investor favorites well beyond 2025. If not, the high valuations could prove unsustainable. Either way, this list captures the pulse of the current market, balancing excitement about the future with the enduring value of established leaders.