Spotify (SPOT) closed the most recent trading day at $722.35, moving -5.86% from the previous trading session. This change lagged the S&P 500's daily loss of 0.11%. Meanwhile, the Dow experienced a rise of 0.91%, and the technology-dominated Nasdaq saw a decrease of 0.82%.
Shares of the music-streaming service operator witnessed a gain of 14.19% over the previous month, beating the performance of the Computer and Technology sector with its gain of 8.76%, and the S&P 500's gain of 5.17%.
Market participants will be closely following the financial results of Spotify in its upcoming release. The company plans to announce its earnings on July 29, 2025. The company is forecasted to report an EPS of $2.29, showcasing a 60.14% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $4.79 billion, indicating a 16.93% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.22 per share and a revenue of $19.94 billion, representing changes of +54.96% and +17.6%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Spotify. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.97% higher. Currently, Spotify is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Spotify is currently trading at a Forward P/E ratio of 83.21. This represents a premium compared to its industry average Forward P/E of 29.16.
We can also see that SPOT currently has a PEG ratio of 2.02. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 2.27 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 40, placing it within the top 17% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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
