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Spotify (SPOT) Suffers a Larger Drop Than the General Market: Key Insights
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In the latest trading session, Spotify (SPOT - Free Report) closed at $475.99, marking a -2.18% move from the previous day. This change lagged the S&P 500's 0.11% loss on the day. Elsewhere, the Dow saw a downswing of 0.56%, while the tech-heavy Nasdaq appreciated by 0.35%.
Shares of the music-streaming service operator have depreciated by 4.51% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.88%, and the S&P 500's gain of 0.51%.
The upcoming earnings release of Spotify will be of great interest to investors. The company's earnings report is expected on April 28, 2026. The company is expected to report EPS of $3.64, up 222.12% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.37 billion, up 21.93% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.44 per share and a revenue of $23.13 billion, representing changes of +29.86% and +19.03%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Spotify. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 1.31% fall in the Zacks Consensus EPS estimate. As of now, Spotify holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Spotify is holding a Forward P/E ratio of 31.53. This indicates a premium in contrast to its industry's Forward P/E of 17.88.
It is also worth noting that SPOT currently has a PEG ratio of 1.08. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Software stocks are, on average, holding a PEG ratio of 1 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 39% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Spotify (SPOT) Suffers a Larger Drop Than the General Market: Key Insights
In the latest trading session, Spotify (SPOT - Free Report) closed at $475.99, marking a -2.18% move from the previous day. This change lagged the S&P 500's 0.11% loss on the day. Elsewhere, the Dow saw a downswing of 0.56%, while the tech-heavy Nasdaq appreciated by 0.35%.
Shares of the music-streaming service operator have depreciated by 4.51% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.88%, and the S&P 500's gain of 0.51%.
The upcoming earnings release of Spotify will be of great interest to investors. The company's earnings report is expected on April 28, 2026. The company is expected to report EPS of $3.64, up 222.12% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.37 billion, up 21.93% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.44 per share and a revenue of $23.13 billion, representing changes of +29.86% and +19.03%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Spotify. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 1.31% fall in the Zacks Consensus EPS estimate. As of now, Spotify holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Spotify is holding a Forward P/E ratio of 31.53. This indicates a premium in contrast to its industry's Forward P/E of 17.88.
It is also worth noting that SPOT currently has a PEG ratio of 1.08. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Software stocks are, on average, holding a PEG ratio of 1 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 39% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.