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Spotify (SPOT) Declines More Than Market: Some Information for Investors
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Spotify (SPOT - Free Report) ended the recent trading session at $497.51, demonstrating a -2.45% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.77%. On the other hand, the Dow registered a loss of 0.67%, and the technology-centric Nasdaq decreased by 0.92%.
Coming into today, shares of the music-streaming service operator had lost 6.85% in the past month. In that same time, the Computer and Technology sector gained 6.26%, while the S&P 500 gained 0.96%.
The upcoming earnings release of Spotify will be of great interest to investors. The company's earnings report is expected on October 22, 2026. The company is predicted to post an EPS of $3.24, indicating a 15.4% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $5.76 billion, up 15.31% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.16 per share and revenue of $22.57 billion. These totals would mark changes of +19.09% and +16.12%, respectively, from last year.
Investors should also take note of any recent adjustments to 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 suggests that these changes in estimates have a direct relationship with upcoming 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 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. Within the past 30 days, our consensus EPS projection has moved 0.43% lower. At present, Spotify boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Spotify is currently being traded at a Forward P/E ratio of 36.03. This valuation marks a premium compared to its industry average Forward P/E of 18.89.
It's also important to note that SPOT currently trades at a PEG ratio of 1.52. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SPOT's industry had an average PEG ratio of 1.13 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 37% 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) Declines More Than Market: Some Information for Investors
Spotify (SPOT - Free Report) ended the recent trading session at $497.51, demonstrating a -2.45% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.77%. On the other hand, the Dow registered a loss of 0.67%, and the technology-centric Nasdaq decreased by 0.92%.
Coming into today, shares of the music-streaming service operator had lost 6.85% in the past month. In that same time, the Computer and Technology sector gained 6.26%, while the S&P 500 gained 0.96%.
The upcoming earnings release of Spotify will be of great interest to investors. The company's earnings report is expected on October 22, 2026. The company is predicted to post an EPS of $3.24, indicating a 15.4% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $5.76 billion, up 15.31% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.16 per share and revenue of $22.57 billion. These totals would mark changes of +19.09% and +16.12%, respectively, from last year.
Investors should also take note of any recent adjustments to 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 suggests that these changes in estimates have a direct relationship with upcoming 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 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. Within the past 30 days, our consensus EPS projection has moved 0.43% lower. At present, Spotify boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Spotify is currently being traded at a Forward P/E ratio of 36.03. This valuation marks a premium compared to its industry average Forward P/E of 18.89.
It's also important to note that SPOT currently trades at a PEG ratio of 1.52. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SPOT's industry had an average PEG ratio of 1.13 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 37% 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.