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Spotify (SPOT) Outpaces Stock Market Gains: What You Should Know

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Spotify (SPOT - Free Report) closed the most recent trading day at $88.04, moving +1.52% from the previous trading session. This change outpaced the S&P 500's 1.14% gain on the day. Meanwhile, the Dow gained 1.12%, and the Nasdaq, a tech-heavy index, added 0.04%.

Investors will be hoping for strength from Spotify as it approaches its next earnings release, which is expected to be October 25, 2022. The company is expected to report EPS of -$0.88, down 83.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.06 billion, up 3.77% from the year-ago period.

SPOT's full-year Zacks Consensus Estimates are calling for earnings of -$2.09 per share and revenue of $11.81 billion. These results would represent year-over-year changes of -71.31% and +3.4%, respectively.

Any recent changes to analyst estimates for Spotify should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 2.96% lower. Spotify is currently a Zacks Rank #3 (Hold).

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 141, which puts it in the bottom 45% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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