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Spotify (SPOT) Stock Drops Despite Market Gains: Important Facts to Note
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Spotify (SPOT - Free Report) closed the most recent trading day at $472.89, moving -3.77% from the previous trading session. This change lagged the S&P 500's 0.73% gain on the day. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 1.19%.
Shares of the music-streaming service operator witnessed a loss of 12.27% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.36%, and the S&P 500's gain of 0.55%.
Analysts and investors alike will be keeping a close eye on the performance of Spotify in its upcoming earnings disclosure. The company's earnings report is set to go public on October 22, 2026. The company is expected to report EPS of $3.12, down 18.54% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.76 billion, up 15.31% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.85 per share and revenue of $22.61 billion, indicating changes of +16.48% and +16.36%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Spotify. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.59% lower. Spotify presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Spotify has a Forward P/E ratio of 35.49 right now. This denotes a premium relative to the industry average Forward P/E of 19.59.
One should further note that SPOT currently holds a PEG ratio of 1.5. 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 1.17 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 92, finds itself in the top 38% echelons 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) Stock Drops Despite Market Gains: Important Facts to Note
Spotify (SPOT - Free Report) closed the most recent trading day at $472.89, moving -3.77% from the previous trading session. This change lagged the S&P 500's 0.73% gain on the day. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 1.19%.
Shares of the music-streaming service operator witnessed a loss of 12.27% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.36%, and the S&P 500's gain of 0.55%.
Analysts and investors alike will be keeping a close eye on the performance of Spotify in its upcoming earnings disclosure. The company's earnings report is set to go public on October 22, 2026. The company is expected to report EPS of $3.12, down 18.54% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.76 billion, up 15.31% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.85 per share and revenue of $22.61 billion, indicating changes of +16.48% and +16.36%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Spotify. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.59% lower. Spotify presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Spotify has a Forward P/E ratio of 35.49 right now. This denotes a premium relative to the industry average Forward P/E of 19.59.
One should further note that SPOT currently holds a PEG ratio of 1.5. 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 1.17 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 92, finds itself in the top 38% echelons 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.