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Jim Cramer States “Spotify’s Still the Clear Market Leader for a Reason”

Spotify Technology S.A. (NYSE:SPOT) is one of the stocks Jim Cramer put under the spotlight. Cramer called the company the “best streaming audio platform” 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…

Going forward, Spotify plans to focus on driving adoption, launching new advertising tools, and improving performance. They even said they’re seeing early signs of progress in their programmatic ad sales business. Pretty good, huh? One more positive, Spotify recently increased its buyback authorization from $1 billion to $2 billion, leaving about $1.9 billion still available. The company hasn’t bought back stock since 2022, but this expanded repurchase authorization signals that I think they might be getting ready to buy their own shares, right along with you.

… I never take competition with Apple or Amazon lightly, but Spotify’s still the clear market leader for a reason. For now, nobody else comes close… Even though Spotify’s latest quarter did indeed come up short, no one’s denying that, I think the total breakdown in the stock has created a tremendous buying opportunity, and this is a genuinely great franchise.”

Photo by Alexander Shatov on Unsplash

Spotify (NYSE:SPOT) provides music and podcast streaming through subscription-based and ad-supported models.

While we acknowledge the risk and potential of SPOT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SPOT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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