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Spotify (SPOT) Stock Moves -1.24%: What You Should Know

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Spotify (SPOT - Free Report) closed the most recent trading day at $558.42, moving -1.24% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 4.84% for the day. Meanwhile, the Dow lost 3.98%, and the Nasdaq, a tech-heavy index, lost 5.97%.

Coming into today, shares of the music-streaming service operator had lost 3.65% in the past month. In that same time, the Computer and Technology sector lost 7.53%, while the S&P 500 lost 4.7%.

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 29, 2025. The company's upcoming EPS is projected at $2.24, signifying a 113.33% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.38 billion, indicating a 10.9% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.13 per share and revenue of $18.85 billion. These totals would mark changes of +70.25% and +11.21%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Spotify. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 witnessed a 1.01% decrease. Spotify is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Spotify currently has a Forward P/E ratio of 55.81. Its industry sports an average Forward P/E of 26.52, so one might conclude that Spotify is trading at a premium comparatively.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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