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Spotify (SPOT) Laps the Stock Market: Here's Why

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In the latest close session, Spotify (SPOT - Free Report) was up +1.67% at $728.47. The stock exceeded the S&P 500, which registered a gain of 0.26% for the day. On the other hand, the Dow registered a gain of 0.15%, and the technology-centric Nasdaq increased by 0.48%.

Coming into today, shares of the music-streaming service operator had gained 5.08% in the past month. In that same time, the Computer and Technology sector gained 7.4%, while the S&P 500 gained 2.87%.

Market participants will be closely following the financial results of Spotify in its upcoming release. The company plans to announce its earnings on November 4, 2025. On that day, Spotify is projected to report earnings of $1.96 per share, which would represent year-over-year growth of 23.27%. Simultaneously, our latest consensus estimate expects the revenue to be $4.88 billion, showing a 11.37% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.77 per share and revenue of $19.9 billion, which would represent changes of -3.03% and +17.4%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Spotify. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Spotify presently features a Zacks Rank of #3 (Hold).

In the context of valuation, Spotify is at present trading with a Forward P/E ratio of 124.18. This denotes a premium relative to the industry average Forward P/E of 29.71.

One should further note that SPOT currently holds a PEG ratio of 3.08. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry had an average PEG ratio of 2.27 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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