Spotify (SPOT) closed the most recent trading day at $539.37, moving -2.58% from the previous trading session. This change lagged the S&P 500's daily gain of 0.65%. On the other hand, the Dow registered a gain of 0.48%, and the technology-centric Nasdaq increased by 0.82%.
Shares of the music-streaming service operator witnessed a loss of 7.55% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 1.6%, and the S&P 500's gain of 1.15%.
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 February 10, 2026. The company's earnings per share (EPS) are projected to be $3.2, reflecting a 70.21% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $5.1 billion, up 12.75% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $7.91 per share and a revenue of $19.52 billion, demonstrating changes of +32.94% and 0%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Spotify. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. Spotify is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Spotify is holding a Forward P/E ratio of 38.93. This denotes a premium relative to the industry average Forward P/E of 24.73.
One should further note that SPOT currently holds a PEG ratio of 0.99. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.51 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 53, positioning it in the top 22% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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