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Spotify (SPOT) Stock Sinks As Market Gains: What You Should Know

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Spotify (SPOT - Free Report) closed at $314.66 in the latest trading session, marking a -1.47% move from the prior day. This change lagged the S&P 500's daily gain of 0.64%. Elsewhere, the Dow gained 0.65%, while the tech-heavy Nasdaq added 0.14%.

Heading into today, shares of the music-streaming service operator had lost 0.48% over the past month, lagging the Business Services sector's gain of 2.4% and the S&P 500's gain of 3.19% in that time.

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 -$0.76 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.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$3.67 per share and revenue of $9.30 billion, which would represent changes of -219.13% and +22.24%, respectively, from the prior year.

Any recent changes to analyst estimates for SPOT should also be noted by investors. 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 company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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 5.46% lower. SPOT is currently a Zacks Rank #3 (Hold).

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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