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

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In the latest trading session, Spotify (SPOT - Free Report) closed at $321.96, marking a -1.11% move from the previous day. This change lagged the S&P 500's 0.21% loss on the day. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq gained 0.51%.

Heading into today, shares of the music-streaming service operator had gained 21.09% over the past month, outpacing the Business Services sector's gain of 4.79% and the S&P 500's gain of 4% in that time.

Investors will be hoping for strength from SPOT as it approaches its next earnings release. In that report, analysts expect SPOT to post earnings of -$0.76 per share. This would mark year-over-year growth of 39.68%. Our most recent consensus estimate is calling for quarterly revenue of $2.53 billion, up 23.17% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$3.67 per share and revenue of $9.30 billion. These totals would mark changes of -219.13% and +22.24%, respectively, from last year.

Any recent changes to analyst estimates for SPOT should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 8.41% lower. SPOT currently has 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 163, putting it in the bottom 37% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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