Spotify (SPOT) ended the recent trading session at $671.52, demonstrating a +1.06% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.53%. Elsewhere, the Dow saw an upswing of 0.52%, while the tech-heavy Nasdaq appreciated by 0.52%.
Coming into today, shares of the music-streaming service operator had lost 9.49% in the past month. In that same time, the Computer and Technology sector gained 2.01%, while the S&P 500 gained 0.71%.
Analysts and investors alike will be keeping a close eye on the performance of Spotify in its upcoming earnings disclosure. The company's earnings report is set to go public on November 4, 2025. The company is expected to report EPS of $1.85, up 16.35% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.89 billion, up 11.62% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.46 per share and a revenue of $19.9 billion, signifying shifts of -8.24% and +17.38%, respectively, from the last year.
Any recent changes to analyst estimates for Spotify should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 5.31% downward. Spotify currently has a Zacks Rank of #4 (Sell).
Digging into valuation, Spotify currently has a Forward P/E ratio of 121.62. This expresses a premium compared to the average Forward P/E of 28.77 of its industry.
One should further note that SPOT currently holds a PEG ratio of 3.17. 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 was holding an average PEG ratio of 1.95 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 65, this industry ranks in the top 27% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Spotify Technology (SPOT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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