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Spotify (SPOT) Gains But Lags Market: What You Should Know
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Spotify (SPOT - Free Report) closed the most recent trading day at $484.91, moving +2.09% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.91%. Elsewhere, the Dow saw an upswing of 2.49%, while the tech-heavy Nasdaq appreciated by 3.83%.
The music-streaming service operator's shares have seen a decrease of 6.36% over the last month, surpassing the Computer and Technology sector's loss of 9.45% and the S&P 500's loss of 7.64%.
Market participants will be closely following the financial results of Spotify in its upcoming release. The company plans to announce its earnings on April 28, 2026. The company's earnings per share (EPS) are projected to be $3.68, reflecting a 225.66% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $5.37 billion, indicating a 21.93% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $15.64 per share and a revenue of $23.12 billion, demonstrating changes of +31.54% and +18.98%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Spotify. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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 0.19% lower. Right now, Spotify possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Spotify is currently trading at a Forward P/E ratio of 30.37. This valuation marks a premium compared to its industry average Forward P/E of 18.75.
It is also worth noting that SPOT currently has a PEG ratio of 1.04. 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 was holding an average PEG ratio of 1.04 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 151, placing it within the bottom 39% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Spotify (SPOT) Gains But Lags Market: What You Should Know
Spotify (SPOT - Free Report) closed the most recent trading day at $484.91, moving +2.09% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.91%. Elsewhere, the Dow saw an upswing of 2.49%, while the tech-heavy Nasdaq appreciated by 3.83%.
The music-streaming service operator's shares have seen a decrease of 6.36% over the last month, surpassing the Computer and Technology sector's loss of 9.45% and the S&P 500's loss of 7.64%.
Market participants will be closely following the financial results of Spotify in its upcoming release. The company plans to announce its earnings on April 28, 2026. The company's earnings per share (EPS) are projected to be $3.68, reflecting a 225.66% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $5.37 billion, indicating a 21.93% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $15.64 per share and a revenue of $23.12 billion, demonstrating changes of +31.54% and +18.98%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Spotify. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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 0.19% lower. Right now, Spotify possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Spotify is currently trading at a Forward P/E ratio of 30.37. This valuation marks a premium compared to its industry average Forward P/E of 18.75.
It is also worth noting that SPOT currently has a PEG ratio of 1.04. 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 was holding an average PEG ratio of 1.04 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 151, placing it within the bottom 39% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.