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Daniel Ek, President and CEO and co-founder of Spotify AB.
Cramer said Wall Street misinterpreted the latest Spotify results and forecasts report, and misunderstood stocks such as these give investors an opportunity to make money.
He called stock market badysts like Anthony DiClemente of Everscore ISI, who downgraded their shares due to concerns about growth in the number of subscribers.
"I think it's madness," said Cramer, who has been optimistic about the streaming music platform since it was released last April. "It's as if the market simply did not know how to read this company or its quarterly forecasts.In my opinion, Spotify is really on the right track."
The title was shaken after Wednesday's publication of seemingly mixed quarterly results, Cramer said. After Spotify posted lower than expected sales, limited cash flow, and conservative expectations, including growth in subscribers, stocks sold below $ 129 at some point in the trading session. Thursday.
But Cramer noted that the company had exceeded expectations in terms of operating profit and gross margin, 120 basis points more than expected.
"I think the sellers lacked a lot of context here and the context is something that I like to talk a lot about, he called UPOD, they promised … and then they were up to it," he explained. "At this point, CEO Daniel Ek and his team have earned a reputation for prudent leadership – under promise – then superiority – to achieve results."
Spotify's forecast includes planned investment costs and the company could "become the first platform for podcasts", a hot market for hard-to-reach generations, Cramer said.
Click here to read Cramer's complete take.
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