In the latest market close, Spotify (SPOT) reached $592.70, with a +0.39% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 1.67%. Elsewhere, the Dow saw an upswing of 1.07%, while the tech-heavy Nasdaq appreciated by 2.5%.
Shares of the music-streaming service operator witnessed a loss of 4.14% over the previous month, beating the performance of the Computer and Technology sector with its loss of 9.93% and the S&P 500's loss of 6.57%.
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 April 29, 2025. On that day, Spotify is projected to report earnings of $2.31 per share, which would represent year-over-year growth of 120%. Meanwhile, our latest consensus estimate is calling for revenue of $4.41 billion, up 11.64% from the prior-year quarter.
SPOT's full-year Zacks Consensus Estimates are calling for earnings of $10.37 per share and revenue of $18.93 billion. These results would represent year-over-year changes of +74.29% and +11.68%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Spotify. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.29% higher. Currently, Spotify is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, Spotify is holding a Forward P/E ratio of 56.96. For comparison, its industry has an average Forward P/E of 24.08, which means Spotify is trading at a premium to the group.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 79, which puts it in the top 32% of all 250+ industries.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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