In the latest trading session, Spotify (SPOT) closed at $656.68, marking a -1.35% move from the previous day. This change lagged the S&P 500's 0.99% loss on the day. Elsewhere, the Dow lost 0.23%, while the tech-heavy Nasdaq lost 1.58%.
The music-streaming service operator's stock has dropped by 5% in the past month, falling short of the Computer and Technology sector's gain of 7.77% and the S&P 500's gain of 3.59%.
Investors will be eagerly watching for the performance of Spotify in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 4, 2025. The company is forecasted to report an EPS of $1.87, showcasing a 17.61% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $4.92 billion, reflecting a 12.29% rise from the equivalent quarter last year.
SPOT's full-year Zacks Consensus Estimates are calling for earnings of $4.95 per share and revenue of $19.97 billion. These results would represent year-over-year changes of -16.81% and +17.81%, respectively.
Investors should also note any recent changes to analyst estimates for Spotify. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 14.4% decrease. At present, Spotify boasts a Zacks Rank of #4 (Sell).
Looking at valuation, Spotify is presently trading at a Forward P/E ratio of 134.62. This represents a premium compared to its industry average Forward P/E of 29.91.
Also, we should mention that SPOT has a PEG ratio of 3.51. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.16 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 74, finds itself in the top 30% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SPOT in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Spotify Technology (SPOT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
