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Daniel Ek, CEO and co-founder of Spotify AB.
Cramer said Wall Street has misunderstood Spotify's latest earnings report and guidance, and that misunderstood stocks like these allow investors to make money.
He called out analysts like Everscore ISI's Anthony DiClemente, who has downgraded equity over subscriber growth concerns.
"I think this is lunacy," said Cramer, who has been bullish on the music streaming platform since it was published in April last year. "It's as if the market just doesn't know how to read this company or quarterly guidance. In my opinion, Spotify is on the right track."
The stock was rocked after a seemingly mixed quarterly earnings released Wednesday, Cramer said. After Spotify reported lower-than-expected sales, tight cash flow and full-line conservative guidance, including subscriber growth, stocks sold below $ 129 at some point in Thursday's season.
But Cramer noted that the company had expectations of operating profit and gross margin, which was 120 basis points higher than was asked.
"I think the sellers lacked a lot of context here, and the context is something I like to talk about a lot and it's called UPOD. They promise .. And then they live over," he claimed. "At this point, CEO Daniel Ek and his team have established an overview of giving careful guidance – under promise – and then over."
Spotify's guidance includes planned investment costs and the company could "become a premier podcast platform," a hot market for difficult to reach millennia, Cramer said.
Click here to read Cramer's full take.