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Spotify (SPOT) Dips More Than Broader Markets: What You Should Know

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Spotify (SPOT - Free Report) closed at $341.22 in the latest trading session, marking a -0.61% move from the prior day. This change lagged the S&P 500's 0.13% loss on the day. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, lost 0.23%.

Coming into today, shares of the music-streaming service operator had gained 32.71% in the past month. In that same time, the Business Services sector gained 3.38%, while the S&P 500 gained 3.58%.

Wall Street will be looking for positivity from SPOT as it approaches its next earnings report date. In that report, analysts expect SPOT to post earnings of -$0.59 per share. This would mark year-over-year growth of 53.17%. Meanwhile, our latest consensus estimate is calling for revenue of $2.53 billion, up 23.17% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$3.50 per share and revenue of $9.26 billion, which would represent changes of -204.35% and +21.63%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for SPOT. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.8% lower. SPOT is currently sporting a Zacks Rank of #3 (Hold).

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the 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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