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Spotify (SPOT) Dips More Than Broader Market: What You Should Know
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Spotify (SPOT - Free Report) ended the recent trading session at $522.44, demonstrating a -2.67% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.64%. Meanwhile, the Dow lost 0.59%, and the Nasdaq, a tech-heavy index, lost 0.59%.
Heading into today, shares of the music-streaming service operator had gained 9.01% over the past month, lagging the Computer and Technology sector's gain of 13.17% and the S&P 500's gain of 9.33%.
The investment community will be paying close attention to the earnings performance of Spotify in its upcoming release. The company is slated to reveal its earnings on April 28, 2026. The company is predicted to post an EPS of $3.63, indicating a 221.24% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $5.37 billion, up 21.73% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.55 per share and a revenue of $23.1 billion, representing changes of +30.78% and +18.88%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Spotify. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 1.58% fall in the Zacks Consensus EPS estimate. Spotify is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Spotify is presently trading at a Forward P/E ratio of 34.52. For comparison, its industry has an average Forward P/E of 19.72, which means Spotify is trading at a premium to the group.
We can also see that SPOT currently has a PEG ratio of 1.18. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Software industry stood at 1.14 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 35% of over 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.
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) Dips More Than Broader Market: What You Should Know
Spotify (SPOT - Free Report) ended the recent trading session at $522.44, demonstrating a -2.67% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.64%. Meanwhile, the Dow lost 0.59%, and the Nasdaq, a tech-heavy index, lost 0.59%.
Heading into today, shares of the music-streaming service operator had gained 9.01% over the past month, lagging the Computer and Technology sector's gain of 13.17% and the S&P 500's gain of 9.33%.
The investment community will be paying close attention to the earnings performance of Spotify in its upcoming release. The company is slated to reveal its earnings on April 28, 2026. The company is predicted to post an EPS of $3.63, indicating a 221.24% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $5.37 billion, up 21.73% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.55 per share and a revenue of $23.1 billion, representing changes of +30.78% and +18.88%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Spotify. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 1.58% fall in the Zacks Consensus EPS estimate. Spotify is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Spotify is presently trading at a Forward P/E ratio of 34.52. For comparison, its industry has an average Forward P/E of 19.72, which means Spotify is trading at a premium to the group.
We can also see that SPOT currently has a PEG ratio of 1.18. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Software industry stood at 1.14 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 35% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.