10 Stocks on Jim Cramer’s Radar

5. Spotify Technology S.A. (NYSE:SPOT)

Cramer said that Spotify Technology S.A. (NYSE:SPOT) is akin to Netflix and emphasized that the stock is a bargain.

“Spotify reports, and that stock’s up more than 100% for the year because they keep raising numbers beyond even the wildest of analyst projections. And I bet they can do it again. You know why? Because people regard it as a bargain. It’s kind of like Netflix. This is a bargain, bargain bargain.”

Spotify (NYSE:SPOT) offers audio streaming subscription services, providing both ad-free, unlimited access to music and podcasts for paying users, and ad-supported access for free users on various devices. In its third-quarter earnings report, released on November 12, the company highlighted strong growth across multiple key metrics.

Its total revenue reached €4 billion, marking a 19% year-over-year increase. This growth was supported by a rise in operating income, which improved to €454 million. Premium revenue saw a 24% year-over-year increase on a constant-currency basis, driven by ongoing subscriber growth and an acceleration in average revenue per user (ARPU), which benefited from recent price hikes. At the same time, the company’s advertising revenue grew by 7% in currency-neutral terms

Spotify’s (NYSE:SPOT) user base also continued to expand. The company reported an 11% year-over-year increase in Monthly Active Users (MAUs), which reached 640 million by the end of the quarter. Additionally, the number of subscribers grew by 12% year-over-year, reaching 252 million.

During the earnings call, management mentioned that a key part of the company’s growth strategy is its ongoing transformation of the platform, particularly through the development of the Spotify Ad Exchange. This initiative, now being piloted in partnership with Trade Desk, aims to refine the company’s advertising model and diversify revenue streams. Management noted that 2025 would be a year of experimentation and testing for this new advertising approach, with expectations that the impact would be felt in 2026.