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Spotify (SPOT) ended the recent trading session at $574.25, demonstrating a +1.99% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.13%. Meanwhile, the Dow lost 1.33%, and the Nasdaq, a tech-heavy index, lost 0.13%.
The music-streaming service operator's stock has dropped by 3.95% in the past month, exceeding the Computer and Technology sector's loss of 9.27% and the S&P 500's loss of 6.3%.
Market participants will be closely following the financial results of Spotify in its upcoming release. The company plans to announce its earnings on April 29, 2025. The company's upcoming EPS is projected at $2.31, signifying a 120% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $4.41 billion, showing a 11.64% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.37 per share and revenue of $18.93 billion, indicating changes of +74.29% and +11.68%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Spotify. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.29% higher. Spotify currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Spotify has a Forward P/E ratio of 54.32 right now. This expresses a premium compared to the average Forward P/E of 24.35 of its industry.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 72, placing it within the top 30% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.