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Why the Market Dipped But Spotify (SPOT) Gained Today
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Spotify (SPOT - Free Report) closed the most recent trading day at $685.29, moving +1.73% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 2.71%. Meanwhile, the Dow experienced a drop of 1.9%, and the technology-dominated Nasdaq saw a decrease of 3.56%.
Shares of the music-streaming service operator witnessed a loss of 2.41% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.22%, and the S&P 500's gain of 3.5%.
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 November 4, 2025. In that report, analysts expect Spotify to post earnings of $1.86 per share. This would mark year-over-year growth of 16.98%. Simultaneously, our latest consensus estimate expects the revenue to be $4.9 billion, showing a 11.87% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.53 per share and revenue of $19.99 billion, indicating changes of -7.06% and +17.9%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Spotify. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 4.68% lower. At present, Spotify boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Spotify currently has a Forward P/E ratio of 121.82. For comparison, its industry has an average Forward P/E of 30.41, which means Spotify is trading at a premium to the group.
We can also see that SPOT currently has a PEG ratio of 3.17. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.12 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 83, finds itself in the top 34% echelons 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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Why the Market Dipped But Spotify (SPOT) Gained Today
Spotify (SPOT - Free Report) closed the most recent trading day at $685.29, moving +1.73% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 2.71%. Meanwhile, the Dow experienced a drop of 1.9%, and the technology-dominated Nasdaq saw a decrease of 3.56%.
Shares of the music-streaming service operator witnessed a loss of 2.41% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.22%, and the S&P 500's gain of 3.5%.
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 November 4, 2025. In that report, analysts expect Spotify to post earnings of $1.86 per share. This would mark year-over-year growth of 16.98%. Simultaneously, our latest consensus estimate expects the revenue to be $4.9 billion, showing a 11.87% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.53 per share and revenue of $19.99 billion, indicating changes of -7.06% and +17.9%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Spotify. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 4.68% lower. At present, Spotify boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Spotify currently has a Forward P/E ratio of 121.82. For comparison, its industry has an average Forward P/E of 30.41, which means Spotify is trading at a premium to the group.
We can also see that SPOT currently has a PEG ratio of 3.17. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.12 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 83, finds itself in the top 34% echelons 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.