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

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Spotify (SPOT - Free Report) closed the most recent trading day at $106.52, moving -1.51% from the previous trading session. This move lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, lost 0.09%.

Prior to today's trading, shares of the music-streaming service operator had lost 10.22% over the past month. This has lagged the Business Services sector's loss of 7.1% and the S&P 500's loss of 4.13% in that time.

Investors will be hoping for strength from Spotify as it approaches its next earnings release. In that report, analysts expect Spotify to post earnings of -$0.89 per share. This would mark a year-over-year decline of 85.42%. Our most recent consensus estimate is calling for quarterly revenue of $3.06 billion, up 3.83% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$2.03 per share and revenue of $11.9 billion. These totals would mark changes of -66.39% and +4.17%, respectively, from last year.

Any recent changes to analyst estimates for Spotify should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 21.17% lower within the past month. Spotify 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 137, putting it in the bottom 46% 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.

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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