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Spotify (SPOT) Dips More Than Broader Market: What You Should Know
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Spotify (SPOT - Free Report) closed at $664.46 in the latest trading session, marking a -1.02% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.63%. Elsewhere, the Dow lost 0.65%, while the tech-heavy Nasdaq lost 0.47%.
The stock of music-streaming service operator has fallen by 5.08% in the past month, lagging the Computer and Technology sector's gain of 1.9% and the S&P 500's gain of 0.92%.
Analysts and investors alike will be keeping a close eye on the performance of Spotify in its upcoming earnings disclosure. The company's earnings report is set to go public on November 4, 2025. The company's upcoming EPS is projected at $1.85, signifying a 16.35% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $4.89 billion, indicating a 11.62% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.46 per share and a revenue of $19.9 billion, representing changes of -8.24% and +17.38%, respectively, from the prior year.
Any recent changes to analyst estimates for Spotify should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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, the Zacks Consensus EPS estimate has moved 5.31% lower. Spotify currently has a Zacks Rank of #4 (Sell).
Digging into valuation, Spotify currently has a Forward P/E ratio of 122.87. Its industry sports an average Forward P/E of 29.25, so one might conclude that Spotify is trading at a premium comparatively.
Meanwhile, SPOT's PEG ratio is currently 3.2. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 1.98 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 62, positioning it in the top 26% 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.
To follow SPOT in the coming trading sessions, be sure to utilize Zacks.com.
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Spotify (SPOT) Dips More Than Broader Market: What You Should Know
Spotify (SPOT - Free Report) closed at $664.46 in the latest trading session, marking a -1.02% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.63%. Elsewhere, the Dow lost 0.65%, while the tech-heavy Nasdaq lost 0.47%.
The stock of music-streaming service operator has fallen by 5.08% in the past month, lagging the Computer and Technology sector's gain of 1.9% and the S&P 500's gain of 0.92%.
Analysts and investors alike will be keeping a close eye on the performance of Spotify in its upcoming earnings disclosure. The company's earnings report is set to go public on November 4, 2025. The company's upcoming EPS is projected at $1.85, signifying a 16.35% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $4.89 billion, indicating a 11.62% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.46 per share and a revenue of $19.9 billion, representing changes of -8.24% and +17.38%, respectively, from the prior year.
Any recent changes to analyst estimates for Spotify should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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, the Zacks Consensus EPS estimate has moved 5.31% lower. Spotify currently has a Zacks Rank of #4 (Sell).
Digging into valuation, Spotify currently has a Forward P/E ratio of 122.87. Its industry sports an average Forward P/E of 29.25, so one might conclude that Spotify is trading at a premium comparatively.
Meanwhile, SPOT's PEG ratio is currently 3.2. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 1.98 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 62, positioning it in the top 26% 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.
To follow SPOT in the coming trading sessions, be sure to utilize Zacks.com.