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Spotify (SPOT) Suffers a Larger Drop Than the General Market: Key Insights
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Spotify (SPOT - Free Report) ended the recent trading session at $455.60, demonstrating a -3.02% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.22% for the day. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq decreased by 1.35%.
Shares of the music-streaming service operator witnessed a gain of 6.39% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.19%, and the S&P 500's gain of 1.56%.
Analysts and investors alike will be keeping a close eye on the performance of Spotify in its upcoming earnings disclosure. On that day, Spotify is projected to report earnings of $3.3 per share, which would represent year-over-year growth of 787.5%. Simultaneously, our latest consensus estimate expects the revenue to be $5.59 billion, showing a 17.4% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.68 per share and revenue of $22.69 billion. These totals would mark changes of +23.47% and +16.78%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Spotify. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 1.32% fall in the Zacks Consensus EPS estimate. Right now, Spotify possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Spotify is presently being traded at a Forward P/E ratio of 32.01. This denotes a premium relative to the industry average Forward P/E of 18.64.
It is also worth noting that SPOT currently has a PEG ratio of 1.15. 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 average PEG ratio for the Internet - Software industry stood at 1.03 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 36% of all industries, numbering over 250.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
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Spotify (SPOT) Suffers a Larger Drop Than the General Market: Key Insights
Spotify (SPOT - Free Report) ended the recent trading session at $455.60, demonstrating a -3.02% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.22% for the day. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq decreased by 1.35%.
Shares of the music-streaming service operator witnessed a gain of 6.39% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.19%, and the S&P 500's gain of 1.56%.
Analysts and investors alike will be keeping a close eye on the performance of Spotify in its upcoming earnings disclosure. On that day, Spotify is projected to report earnings of $3.3 per share, which would represent year-over-year growth of 787.5%. Simultaneously, our latest consensus estimate expects the revenue to be $5.59 billion, showing a 17.4% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.68 per share and revenue of $22.69 billion. These totals would mark changes of +23.47% and +16.78%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Spotify. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 1.32% fall in the Zacks Consensus EPS estimate. Right now, Spotify possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Spotify is presently being traded at a Forward P/E ratio of 32.01. This denotes a premium relative to the industry average Forward P/E of 18.64.
It is also worth noting that SPOT currently has a PEG ratio of 1.15. 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 average PEG ratio for the Internet - Software industry stood at 1.03 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 36% of all industries, numbering over 250.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.