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

SPOT +1.04%

Spotify Technology S.A. (NYSE:SPOT) is one of the stocks Jim Cramer recently answered questions about. When a caller mentioned that the stock has been down recently, Cramer said:

“Yeah, that made no sense to me. I looked at Spotify, too. I don’t understand why it’s not coming back. It’s a great subscription business, and I think you ought to buy the stock.”

Photo by Alexander Shatov on Unsplash

Spotify Technology S.A. (NYSE:SPOT) provides audio streaming services. It lets users listen to music and podcasts either through ad-free subscriptions or free, ad-supported access. Cramer mentioned the company during the August 5 episode and commented:

“We know that the latest results missed the mark, and the guidance for the current quarter didn’t have much going for it. But is that enough reason to give up on a stock like Spotify that’s been a serial outperformer for years?… This is the best streaming audio platform around… They’ve acknowledged the shortcomings and laid out a plan to fix it. And look, despite the weakness in ad revenue, Spotify grew monthly active advertisers by 40% year over year. They also know that most of the heavy lifting on their ad tech stack is now complete…

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Disclosure: None. This article is originally published at Insider Monkey.