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Spotify (SPOT) Beats Stock Market Upswing: What Investors Need to Know
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In the latest close session, Spotify (SPOT - Free Report) was up +2.18% at $720.91. The stock exceeded the S&P 500, which registered a gain of 0.54% for the day. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, added 0.74%.
The stock of music-streaming service operator has fallen by 0.65% in the past month, lagging the Computer and Technology sector's gain of 5.77% and the S&P 500's gain of 4.2%.
The upcoming earnings release of Spotify will be of great interest to investors. The company's earnings report is expected on July 29, 2025. The company's earnings per share (EPS) are projected to be $2.19, reflecting a 53.15% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $4.93 billion, showing a 20.27% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.12 per share and a revenue of $20.5 billion, indicating changes of +53.28% and +20.92%, respectively, from the former year.
Any recent changes to analyst estimates for Spotify should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
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 moved 1.53% lower. Spotify presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Spotify is currently being traded at a Forward P/E ratio of 77.36. Its industry sports an average Forward P/E of 28.39, so one might conclude that Spotify is trading at a premium comparatively.
We can additionally observe that SPOT currently boasts a PEG ratio of 1.88. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.11.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 72, finds itself in the top 30% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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Spotify (SPOT) Beats Stock Market Upswing: What Investors Need to Know
In the latest close session, Spotify (SPOT - Free Report) was up +2.18% at $720.91. The stock exceeded the S&P 500, which registered a gain of 0.54% for the day. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, added 0.74%.
The stock of music-streaming service operator has fallen by 0.65% in the past month, lagging the Computer and Technology sector's gain of 5.77% and the S&P 500's gain of 4.2%.
The upcoming earnings release of Spotify will be of great interest to investors. The company's earnings report is expected on July 29, 2025. The company's earnings per share (EPS) are projected to be $2.19, reflecting a 53.15% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $4.93 billion, showing a 20.27% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.12 per share and a revenue of $20.5 billion, indicating changes of +53.28% and +20.92%, respectively, from the former year.
Any recent changes to analyst estimates for Spotify should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
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 moved 1.53% lower. Spotify presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Spotify is currently being traded at a Forward P/E ratio of 77.36. Its industry sports an average Forward P/E of 28.39, so one might conclude that Spotify is trading at a premium comparatively.
We can additionally observe that SPOT currently boasts a PEG ratio of 1.88. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.11.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 72, finds itself in the top 30% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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.