Back to top

Image: Bigstock

Spotify (SPOT) Declines More Than Market: Some Information for Investors

Read MoreHide Full Article

In the latest trading session, Spotify (SPOT - Free Report) closed at $293.58, marking a -1.51% move from the previous day. This change lagged the S&P 500's daily loss of 0.58%. On the other hand, the Dow registered a loss of 0.12%, and the technology-centric Nasdaq decreased by 1.15%.

Shares of the music-streaming service operator witnessed a gain of 17.93% over the previous month, beating the performance of the Business Services sector with its loss of 4.36% and the S&P 500's loss of 1.09%.

Investors will be eagerly watching for the performance of Spotify in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 23, 2024. The company's upcoming EPS is projected at $0.66, signifying a 153.23% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.88 billion, up 18.87% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.51 per share and a revenue of $16.56 billion, indicating changes of +218.98% and +15.57%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Spotify. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.68% lower. Spotify currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, Spotify is currently exchanging hands at a Forward P/E ratio of 84.83. This signifies a premium in comparison to the average Forward P/E of 22.36 for its industry.

The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 95, finds itself in the top 38% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Spotify Technology (SPOT) - free report >>

Published in