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Spotify (SPOT) Surpasses Market Returns: Some Facts Worth Knowing

Spotify (SPOT) ended the recent trading session at $303.57, demonstrating a +1.19% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.74%. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, added 1.68%.

Prior to today's trading, shares of the music-streaming service operator had gained 16.61% over the past month. This has outpaced the Business Services sector's loss of 1.98% and the S&P 500's gain of 0.8% in that time.

Investors will be eagerly watching for the performance of Spotify in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 23, 2024. The company is expected to report EPS of $0.70, up 156.45% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $3.87 billion, indicating a 18.55% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.55 per share and a revenue of $16.56 billion, indicating changes of +220.34% and +15.57%, respectively, from the former year.

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It's also important for investors to be aware of any recent modifications to analyst estimates for Spotify. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.63% lower. Currently, Spotify is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Spotify has a Forward P/E ratio of 84.47 right now. This expresses a premium compared to the average Forward P/E of 24.74 of its industry.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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Spotify Technology (SPOT) : Free Stock Analysis Report

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Zacks Investment Research