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

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Spotify (SPOT - Free Report) closed at $145.38 in the latest trading session, marking a -0.67% move from the prior day. This move lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, added 0.44%.

Coming into today, shares of the music-streaming service operator had gained 6.2% in the past month. In that same time, the Business Services sector gained 4.72%, while the S&P 500 gained 2.91%.

Wall Street will be looking for positivity from SPOT as it approaches its next earnings report date. The company is expected to report EPS of -$0.75, up 25.74% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.67 billion, up 47.01% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.97 per share and revenue of $7.58 billion. These totals would mark changes of -228.33% and +28.18%, respectively, from last year.

Any recent changes to analyst estimates for SPOT 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. 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.

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 10.74% higher. SPOT currently has a Zacks Rank of #3 (Hold).

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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