In the latest trading session, Spotify (SPOT) closed at $680.50, marking a -3.79% move from the previous day. This move lagged the S&P 500's daily gain of 0.01%. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq lost 0.28%.
The music-streaming service operator's stock has climbed by 0.49% in the past month, falling short of the Computer and Technology sector's gain of 10.49% and the S&P 500's gain of 4.83%.
The investment community will be closely monitoring the performance of Spotify in its forthcoming earnings report. The company is scheduled to release its earnings on November 4, 2025. In that report, analysts expect Spotify to post earnings of $1.89 per share. This would mark year-over-year growth of 18.87%. At the same time, our most recent consensus estimate is projecting a revenue of $4.9 billion, reflecting a 11.71% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.5 per share and a revenue of $19.96 billion, indicating changes of -7.56% and +17.75%, respectively, from the former year.
Any recent changes to analyst estimates for Spotify should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.68% downward. Spotify presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Spotify is currently being traded at a Forward P/E ratio of 128.6. This indicates a premium in contrast to its industry's Forward P/E of 29.87.
We can additionally observe that SPOT currently boasts a PEG ratio of 3.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.25 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 62, putting it in the top 26% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Spotify Technology (SPOT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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