Jim Cramer: Recommended Buy for This Communication Services Stock, Advises Retaining Howmet Aerospace
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 25 2025
0mins
Should l Buy SPOT?
Source: Benzinga
Cramer's Recommendations: Jim Cramer advised holding onto Howmet Aerospace and FTAI Aviation, while recommending to sell Iron Mountain if it rallies. He also suggested buying Spotify and Jacobs Solutions at a specific price.
Stock Performance: On Monday, Howmet Aerospace shares rose by 1.4%, Marvell Technology jumped 8.2%, and Spotify gained 0.2%. In contrast, Iron Mountain shares fell by 0.3%, and Neptune Insurance shares decreased by 0.9%.
Cramer's Views on Other Stocks: Cramer expressed skepticism about Marvell Technology and Astera Labs at current prices, while he showed interest in Rocket Lab as a good investment at its current valuation.
Insurance Recommendations: Cramer stated that Chubb is the only insurance company he would recommend, indicating a lack of confidence in other options like Neptune Insurance.
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Analyst Views on SPOT
Wall Street analysts forecast SPOT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SPOT is 750.79 USD with a low forecast of 525.00 USD and a high forecast of 900.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
15 Buy
6 Hold
0 Sell
Moderate Buy
Current: 412.750
Low
525.00
Averages
750.79
High
900.00
Current: 412.750
Low
525.00
Averages
750.79
High
900.00
About SPOT
Spotify Technology SA a Luxembourg-based company, which offers digital music-streaming services. The Company enables users to discover new releases, which includes the latest singles and albums; playlists, which includes ready-made playlists put together by music fans and experts, and over millions of songs so that users can play their favorites, discover new tracks and build a personalized collection. Its users can either select Spotify Free, which includes only shuffle play or Spotify Premium, which encompasses a range of features, such as shuffle play, advertisement free, unlimited skips, listen offline, play any track and audio. The Company operates through a number of subsidiaries, including Spotify LTD and is present in over 20 countries. Its service offers a music listening experience without commercial breaks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Spotify Expands into Physical Book Sales via Partnership
- New Business Expansion: Spotify's partnership with Bookshop.org allows premium subscribers in the U.S. and U.K. to purchase physical books directly in the app, marking a strategic shift from digital streaming to physical book sales, which is expected to enhance user engagement and diversify revenue streams.
- Support for Independent Bookstores: With Bookshop.org handling pricing, inventory, and fulfillment, Spotify not only provides convenience for users but also supports independent bookstores by sharing profits with local shops, demonstrating its commitment to community responsibility.
- Surge in Young Demand: Despite the presumed decline of bookstores, demand for physical books among younger generations is booming, particularly driven by the BookTok community on TikTok, which has made book buying feel more participatory and social rather than solitary.
- Intensified Market Competition: This initiative positions Spotify more competitively against Amazon and Barnes & Noble while enhancing user experience through features like Page Match, catering to users who enjoy switching between audiobooks and physical reading.
See More
The Profit Power of Audio: Spotify's Journey to Monetizing Sound
Streaming Wars and Market Dynamics: Major streaming platforms like Disney, Netflix, and Amazon are engaged in intense competition, leading to escalating production budgets and subscriber churn, while Spotify has established a stronghold in the audio sector with a more stable business model.
Spotify's Financial Performance: Despite a decline in stock price, Spotify has reported significant growth in gross margins and operating income, achieving a record free cash flow, indicating a shift towards profitability and efficiency in its operations.
Strategic Partnerships and Growth: Spotify is expanding into video content without incurring the high costs associated with traditional video production, including a partnership with Netflix to enhance its video podcast offerings, which could increase its advertising revenue.
Market Position and Future Outlook: Analysts suggest that Spotify's current stock price may represent an attractive buying opportunity, as the company continues to solidify its position in the audio market while navigating economic uncertainties and currency fluctuations.
See More
Cathie Wood's Growth Picks: Spotify and Pinterest
- Spotify's Market Leadership: Despite challenges in the second half of 2025, Spotify maintains its leading position in the global music streaming market, with a solid market share and a goal of reaching one billion monthly active users by 2030, indicating strong growth potential.
- Podcast Strategy Driving Growth: By investing more in podcasts, Spotify aims to enhance user engagement and improve margins, reducing reliance on music royalties, which is crucial for its long-term profitability in a competitive landscape.
- Pinterest User Growth: Despite facing challenges with declining ad demand, Pinterest saw a 12% year-over-year increase in monthly active users, reaching 600 million in Q3, demonstrating the platform's appeal and potential for market expansion.
- International Revenue Boost: Pinterest's average revenue per user (ARPU) is growing rapidly in international markets, and although there is a near-term slowdown, user growth and improved monetization strategies will lay the groundwork for stronger financial performance in the future, enhancing its network effect.
See More
Spotify and Pinterest Face Challenges but Have Optimistic Outlook
- Spotify Market Share: Despite a stock dip in the second half of 2025 due to weak guidance and a CEO change, Spotify maintains its leadership in the global music streaming market, with a goal of reaching 1 billion monthly active users by 2030, indicating strong growth potential.
- Podcast Strategy: By increasing investment in podcasts, Spotify aims to enhance user engagement and improve margins, avoiding costly royalties in its music business, thereby laying the groundwork for long-term growth.
- Pinterest User Growth: Pinterest saw a 12% year-over-year increase in monthly active users, reaching 600 million in Q3 2025; despite challenges from declining ad demand, user growth and improved monetization strategies are expected to drive future performance.
- International Market Performance: Pinterest's average revenue per user (ARPU) is growing rapidly in international markets, indicating improving monetization capabilities, and the application of AI technology is expected to further enhance user engagement and strengthen its network effect.
See More
Investment Opportunities Analyzed: Cathie Wood's Picks
- Spotify's Market Leadership: Despite challenges in the first half of 2025, Spotify maintains its leadership in the global music streaming market, with a goal to reach 1 billion monthly active users by 2030, indicating strong growth potential and market appeal.
- Podcast Strategy as a Growth Driver: By investing more in podcasts, Spotify aims to enhance user engagement and improve margins, avoiding costly royalties in its music business, thereby strengthening its long-term profitability.
- Pinterest User Growth: Pinterest saw a 12% year-over-year increase in monthly active users, reaching 600 million in Q3 2025, indicating the platform's growing appeal and expanding user base despite challenges in ad demand.
- Revenue Growth in International Markets: Pinterest's average revenue per user (ARPU) is rapidly increasing in international markets, reflecting progress in user monetization, which is expected to further enhance its network effect and drive future financial recovery.
See More
Goldman Sachs Sees Quality Buying Opportunities Ahead of Earnings
- Goldman Sachs Recommendations: Analysts at Goldman Sachs highlight compelling buying opportunities in companies like Spotify, Eli Lilly, Roblox, Carlyle Group, and On Holding ahead of earnings, particularly favoring Carlyle Group for its low management fees, which are expected to drive stock price appreciation.
- Carlyle Group Outlook: Analyst Alexander Blostein notes that Carlyle Group's historically low management fee CAGR of just 4% makes its stock undervalued, and its robust cash flow could support future share repurchases or acquisitions, enhancing growth prospects.
- Spotify's Growth Potential: Analyst Eric Sheridan recommends buying Spotify ahead of its earnings report, arguing that the long-term growth potential is currently underestimated, particularly with the introduction of new premium pricing tiers that could enhance the company's pricing power.
- On Holding Market Opportunity: Analyst Richard Edwards from Goldman Sachs points out that the recent pullback in On Holding's shares presents a buying opportunity, with strong indicators for Q4 2025 performance and potential gross margin upside being underestimated by the market, particularly among high-income consumers.
See More
Spotify Expands into Physical Book Sales via Partnership
- New Business Expansion: Spotify's partnership with Bookshop.org allows premium subscribers in the U.S. and U.K. to purchase physical books directly in the app, marking a strategic shift from digital streaming to physical book sales, which is expected to enhance user engagement and diversify revenue streams.
- Support for Independent Bookstores: With Bookshop.org handling pricing, inventory, and fulfillment, Spotify not only provides convenience for users but also supports independent bookstores by sharing profits with local shops, demonstrating its commitment to community responsibility.
- Surge in Young Demand: Despite the presumed decline of bookstores, demand for physical books among younger generations is booming, particularly driven by the BookTok community on TikTok, which has made book buying feel more participatory and social rather than solitary.
- Intensified Market Competition: This initiative positions Spotify more competitively against Amazon and Barnes & Noble while enhancing user experience through features like Page Match, catering to users who enjoy switching between audiobooks and physical reading.
See More
The Profit Power of Audio: Spotify's Journey to Monetizing Sound
Streaming Wars and Market Dynamics: Major streaming platforms like Disney, Netflix, and Amazon are engaged in intense competition, leading to escalating production budgets and subscriber churn, while Spotify has established a stronghold in the audio sector with a more stable business model.
Spotify's Financial Performance: Despite a decline in stock price, Spotify has reported significant growth in gross margins and operating income, achieving a record free cash flow, indicating a shift towards profitability and efficiency in its operations.
Strategic Partnerships and Growth: Spotify is expanding into video content without incurring the high costs associated with traditional video production, including a partnership with Netflix to enhance its video podcast offerings, which could increase its advertising revenue.
Market Position and Future Outlook: Analysts suggest that Spotify's current stock price may represent an attractive buying opportunity, as the company continues to solidify its position in the audio market while navigating economic uncertainties and currency fluctuations.
See More
Cathie Wood's Growth Picks: Spotify and Pinterest
- Spotify's Market Leadership: Despite challenges in the second half of 2025, Spotify maintains its leading position in the global music streaming market, with a solid market share and a goal of reaching one billion monthly active users by 2030, indicating strong growth potential.
- Podcast Strategy Driving Growth: By investing more in podcasts, Spotify aims to enhance user engagement and improve margins, reducing reliance on music royalties, which is crucial for its long-term profitability in a competitive landscape.
- Pinterest User Growth: Despite facing challenges with declining ad demand, Pinterest saw a 12% year-over-year increase in monthly active users, reaching 600 million in Q3, demonstrating the platform's appeal and potential for market expansion.
- International Revenue Boost: Pinterest's average revenue per user (ARPU) is growing rapidly in international markets, and although there is a near-term slowdown, user growth and improved monetization strategies will lay the groundwork for stronger financial performance in the future, enhancing its network effect.
See More
Spotify and Pinterest Face Challenges but Have Optimistic Outlook
- Spotify Market Share: Despite a stock dip in the second half of 2025 due to weak guidance and a CEO change, Spotify maintains its leadership in the global music streaming market, with a goal of reaching 1 billion monthly active users by 2030, indicating strong growth potential.
- Podcast Strategy: By increasing investment in podcasts, Spotify aims to enhance user engagement and improve margins, avoiding costly royalties in its music business, thereby laying the groundwork for long-term growth.
- Pinterest User Growth: Pinterest saw a 12% year-over-year increase in monthly active users, reaching 600 million in Q3 2025; despite challenges from declining ad demand, user growth and improved monetization strategies are expected to drive future performance.
- International Market Performance: Pinterest's average revenue per user (ARPU) is growing rapidly in international markets, indicating improving monetization capabilities, and the application of AI technology is expected to further enhance user engagement and strengthen its network effect.
See More
Investment Opportunities Analyzed: Cathie Wood's Picks
- Spotify's Market Leadership: Despite challenges in the first half of 2025, Spotify maintains its leadership in the global music streaming market, with a goal to reach 1 billion monthly active users by 2030, indicating strong growth potential and market appeal.
- Podcast Strategy as a Growth Driver: By investing more in podcasts, Spotify aims to enhance user engagement and improve margins, avoiding costly royalties in its music business, thereby strengthening its long-term profitability.
- Pinterest User Growth: Pinterest saw a 12% year-over-year increase in monthly active users, reaching 600 million in Q3 2025, indicating the platform's growing appeal and expanding user base despite challenges in ad demand.
- Revenue Growth in International Markets: Pinterest's average revenue per user (ARPU) is rapidly increasing in international markets, reflecting progress in user monetization, which is expected to further enhance its network effect and drive future financial recovery.
See More
Goldman Sachs Sees Quality Buying Opportunities Ahead of Earnings
- Goldman Sachs Recommendations: Analysts at Goldman Sachs highlight compelling buying opportunities in companies like Spotify, Eli Lilly, Roblox, Carlyle Group, and On Holding ahead of earnings, particularly favoring Carlyle Group for its low management fees, which are expected to drive stock price appreciation.
- Carlyle Group Outlook: Analyst Alexander Blostein notes that Carlyle Group's historically low management fee CAGR of just 4% makes its stock undervalued, and its robust cash flow could support future share repurchases or acquisitions, enhancing growth prospects.
- Spotify's Growth Potential: Analyst Eric Sheridan recommends buying Spotify ahead of its earnings report, arguing that the long-term growth potential is currently underestimated, particularly with the introduction of new premium pricing tiers that could enhance the company's pricing power.
- On Holding Market Opportunity: Analyst Richard Edwards from Goldman Sachs points out that the recent pullback in On Holding's shares presents a buying opportunity, with strong indicators for Q4 2025 performance and potential gross margin upside being underestimated by the market, particularly among high-income consumers.
See More
