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Spotify (SPOT) Stock Falls Amid Market Uptick: What Investors Need to Know

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Spotify (SPOT - Free Report) closed the most recent trading day at $458.54, moving -0.22% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.16%. Elsewhere, the Dow saw an upswing of 0.86%, while the tech-heavy Nasdaq depreciated by 0.38%.

Heading into today, shares of the music-streaming service operator had lost 4.92% over the past month, outpacing the Business Services sector's loss of 5.61% and lagging the S&P 500's loss of 2.2% in that time.

The upcoming earnings release of Spotify will be of great interest to investors. The company's earnings report is expected on February 4, 2025. The company's earnings per share (EPS) are projected to be $1.94, reflecting a 597.44% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.37 billion, up 10.55% from the year-ago period.

Investors should also take note of any recent adjustments to analyst estimates for Spotify. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 past month, the Zacks Consensus EPS estimate has shifted 0.92% downward. Currently, Spotify is carrying a Zacks Rank of #3 (Hold).

Looking at its valuation, Spotify is holding a Forward P/E ratio of 51.86. This signifies a premium in comparison to the average Forward P/E of 23.65 for its industry.

The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 75, finds itself in the top 30% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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 Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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