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Spotify (SPOT) Gains As Market Dips: What You Should Know
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Spotify (SPOT - Free Report) ended the recent trading session at $493.95, demonstrating a +2.26% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 1.16%.
Coming into today, shares of the music-streaming service operator had lost 4% in the past month. In that same time, the Computer and Technology sector gained 0.38%, while the S&P 500 gained 2.14%.
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 August 4, 2026. The company is forecasted to report an EPS of $3.29, showcasing a 785.42% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $5.6 billion, reflecting a 17.66% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.62 per share and revenue of $22.67 billion. These totals would mark changes of +22.96% and +16.66%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Spotify. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Within the past 30 days, our consensus EPS projection has moved 0.42% lower. Spotify is currently a Zacks Rank #4 (Sell).
In terms of valuation, Spotify is presently being traded at a Forward P/E ratio of 33.04. Its industry sports an average Forward P/E of 19.77, so one might conclude that Spotify is trading at a premium comparatively.
Investors should also note that SPOT has a PEG ratio of 1.19 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry had an average PEG ratio of 1.09 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 95, putting it in the top 39% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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Spotify (SPOT) Gains As Market Dips: What You Should Know
Spotify (SPOT - Free Report) ended the recent trading session at $493.95, demonstrating a +2.26% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 1.16%.
Coming into today, shares of the music-streaming service operator had lost 4% in the past month. In that same time, the Computer and Technology sector gained 0.38%, while the S&P 500 gained 2.14%.
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 August 4, 2026. The company is forecasted to report an EPS of $3.29, showcasing a 785.42% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $5.6 billion, reflecting a 17.66% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.62 per share and revenue of $22.67 billion. These totals would mark changes of +22.96% and +16.66%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Spotify. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Within the past 30 days, our consensus EPS projection has moved 0.42% lower. Spotify is currently a Zacks Rank #4 (Sell).
In terms of valuation, Spotify is presently being traded at a Forward P/E ratio of 33.04. Its industry sports an average Forward P/E of 19.77, so one might conclude that Spotify is trading at a premium comparatively.
Investors should also note that SPOT has a PEG ratio of 1.19 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry had an average PEG ratio of 1.09 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 95, putting it in the top 39% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.