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Spotify (SPOT) Stock Dips While Market Gains: Key Facts
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Spotify (SPOT - Free Report) ended the recent trading session at $508.04, demonstrating a -3.95% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.26% for the day. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 0.25%.
Coming into today, shares of the music-streaming service operator had lost 6.59% in the past month. In that same time, the Computer and Technology sector gained 1.58%, while the S&P 500 gained 1.57%.
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 February 10, 2026. The company's upcoming EPS is projected at $2.97, signifying a 57.98% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $5.13 billion, up 13.43% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.7 per share and revenue of $19.65 billion, which would represent changes of +29.41% and 0%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Spotify. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 4.95% fall in the Zacks Consensus EPS estimate. Spotify is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Spotify is presently being traded at a Forward P/E ratio of 39.15. This represents a premium compared to its industry average Forward P/E of 23.72.
It's also important to note that SPOT currently trades at a PEG ratio of 1. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.43 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 24% 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.
To follow SPOT in the coming trading sessions, be sure to utilize Zacks.com.
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Spotify (SPOT) Stock Dips While Market Gains: Key Facts
Spotify (SPOT - Free Report) ended the recent trading session at $508.04, demonstrating a -3.95% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.26% for the day. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 0.25%.
Coming into today, shares of the music-streaming service operator had lost 6.59% in the past month. In that same time, the Computer and Technology sector gained 1.58%, while the S&P 500 gained 1.57%.
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 February 10, 2026. The company's upcoming EPS is projected at $2.97, signifying a 57.98% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $5.13 billion, up 13.43% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.7 per share and revenue of $19.65 billion, which would represent changes of +29.41% and 0%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Spotify. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 4.95% fall in the Zacks Consensus EPS estimate. Spotify is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Spotify is presently being traded at a Forward P/E ratio of 39.15. This represents a premium compared to its industry average Forward P/E of 23.72.
It's also important to note that SPOT currently trades at a PEG ratio of 1. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.43 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 24% 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.
To follow SPOT in the coming trading sessions, be sure to utilize Zacks.com.