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Spotify (SPOT) Stock Sinks As Market Gains: Here's Why
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In the latest trading session, Spotify (SPOT - Free Report) closed at $324.75, marking a -0.59% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 1.19% for the day. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 1.96%.
The music-streaming service operator's shares have seen an increase of 9.61% over the last month, surpassing the Business Services sector's gain of 0.48% and the S&P 500's gain of 3.35%.
Market participants will be closely following the financial results of Spotify in its upcoming release. The company is forecasted to report an EPS of $1.08, showcasing a 163.91% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $4.08 billion, reflecting a 17.91% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.78 per share and a revenue of $16.73 billion, indicating changes of +262.03% and +16.73%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Spotify. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Spotify is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note Spotify's current valuation metrics, including its Forward P/E ratio of 68.29. This signifies a premium in comparison to the average Forward P/E of 23.11 for its industry.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Spotify (SPOT) Stock Sinks As Market Gains: Here's Why
In the latest trading session, Spotify (SPOT - Free Report) closed at $324.75, marking a -0.59% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 1.19% for the day. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 1.96%.
The music-streaming service operator's shares have seen an increase of 9.61% over the last month, surpassing the Business Services sector's gain of 0.48% and the S&P 500's gain of 3.35%.
Market participants will be closely following the financial results of Spotify in its upcoming release. The company is forecasted to report an EPS of $1.08, showcasing a 163.91% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $4.08 billion, reflecting a 17.91% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.78 per share and a revenue of $16.73 billion, indicating changes of +262.03% and +16.73%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Spotify. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Spotify is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note Spotify's current valuation metrics, including its Forward P/E ratio of 68.29. This signifies a premium in comparison to the average Forward P/E of 23.11 for its industry.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.