Jim Cramer on Spotify: “I Think You Ought to Buy the Stock”

Core Viewpoint - Spotify Technology S.A. is viewed as a strong investment opportunity despite recent stock performance, with a recommendation to buy due to its robust subscription model and growth potential in the audio streaming market [1]. Company Overview - Spotify provides audio streaming services, allowing users to access music and podcasts through both ad-free subscriptions and free, ad-supported options [1]. - The company has been recognized as a leading platform in the streaming audio sector, with a history of strong performance [1]. Recent Performance - Recent results from Spotify missed expectations, and the guidance for the current quarter was not optimistic [1]. - Despite the challenges in ad revenue, Spotify reported a 40% year-over-year growth in monthly active advertisers [1]. Strategic Outlook - Spotify has acknowledged its shortcomings and has laid out a plan to address them, indicating a proactive approach to improving its business [1]. - The company has completed most of the heavy lifting on its ad tech stack, which may enhance future performance [1].