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Spotify (SPOT) Stock Moves -3.26%: What You Should Know
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In the latest trading session, Spotify (SPOT - Free Report) closed at $499.91, marking a -3.26% move from the previous day. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq gained 0.45%.
The music-streaming service operator's shares have seen a decrease of 3.92% over the last month, not keeping up with the Computer and Technology sector's gain of 6.18% and the S&P 500's gain of 1.27%.
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 $3.24 per share, which would represent a year-over-year decline of 15.4%. In the meantime, our current consensus estimate forecasts the revenue to be $5.76 billion, indicating a 15.31% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.19 per share and revenue of $22.57 billion. These totals would mark changes of +19.34% and +16.12%, respectively, from last 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.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.19% decrease. Spotify is currently a Zacks Rank #3 (Hold).
Digging into valuation, Spotify currently has a Forward P/E ratio of 36.42. This indicates a premium in contrast to its industry's Forward P/E of 20.28.
We can also see that SPOT currently has a PEG ratio of 1.53. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.15.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 35% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Spotify (SPOT) Stock Moves -3.26%: What You Should Know
In the latest trading session, Spotify (SPOT - Free Report) closed at $499.91, marking a -3.26% move from the previous day. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq gained 0.45%.
The music-streaming service operator's shares have seen a decrease of 3.92% over the last month, not keeping up with the Computer and Technology sector's gain of 6.18% and the S&P 500's gain of 1.27%.
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 $3.24 per share, which would represent a year-over-year decline of 15.4%. In the meantime, our current consensus estimate forecasts the revenue to be $5.76 billion, indicating a 15.31% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.19 per share and revenue of $22.57 billion. These totals would mark changes of +19.34% and +16.12%, respectively, from last 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.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.19% decrease. Spotify is currently a Zacks Rank #3 (Hold).
Digging into valuation, Spotify currently has a Forward P/E ratio of 36.42. This indicates a premium in contrast to its industry's Forward P/E of 20.28.
We can also see that SPOT currently has a PEG ratio of 1.53. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.15.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 35% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.