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Spotify (SPOT) Stock Falls Amid Market Uptick: What Investors Need to Know
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Spotify (SPOT - Free Report) closed the most recent trading day at $598.87, moving -1.73% from the previous trading session. This move lagged the S&P 500's daily gain of 0.21%. Elsewhere, the Dow gained 1.35%, while the tech-heavy Nasdaq lost 0.26%.
Shares of the music-streaming service operator have depreciated by 5.94% over the course of the past month, underperforming the Computer and Technology sector's gain of 2.05%, and the S&P 500's gain of 0.89%.
The investment community will be paying close attention to the earnings performance of Spotify in its upcoming release. On that day, Spotify is projected to report earnings of $3.11 per share, which would represent year-over-year growth of 65.43%. Alongside, our most recent consensus estimate is anticipating revenue of $5.2 billion, indicating a 14.97% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.72 per share and a revenue of $19.78 billion, representing changes of +29.75% and +16.69%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Spotify. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. As of now, Spotify holds a Zacks Rank of #2 (Buy).
In terms of valuation, Spotify is presently being traded at a Forward P/E ratio of 78.97. This represents a premium compared to its industry average Forward P/E of 29.38.
Investors should also note that SPOT has a PEG ratio of 2.01 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.01.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Spotify (SPOT) Stock Falls Amid Market Uptick: What Investors Need to Know
Spotify (SPOT - Free Report) closed the most recent trading day at $598.87, moving -1.73% from the previous trading session. This move lagged the S&P 500's daily gain of 0.21%. Elsewhere, the Dow gained 1.35%, while the tech-heavy Nasdaq lost 0.26%.
Shares of the music-streaming service operator have depreciated by 5.94% over the course of the past month, underperforming the Computer and Technology sector's gain of 2.05%, and the S&P 500's gain of 0.89%.
The investment community will be paying close attention to the earnings performance of Spotify in its upcoming release. On that day, Spotify is projected to report earnings of $3.11 per share, which would represent year-over-year growth of 65.43%. Alongside, our most recent consensus estimate is anticipating revenue of $5.2 billion, indicating a 14.97% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.72 per share and a revenue of $19.78 billion, representing changes of +29.75% and +16.69%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Spotify. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. As of now, Spotify holds a Zacks Rank of #2 (Buy).
In terms of valuation, Spotify is presently being traded at a Forward P/E ratio of 78.97. This represents a premium compared to its industry average Forward P/E of 29.38.
Investors should also note that SPOT has a PEG ratio of 2.01 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.01.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.