Spotify (SPOT) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Spotify (SPOT) closed at $235.16, marking a -1.24% move from the previous day.
In the latest trading session, Spotify (SPOT) closed at $235.16, marking a -1.24% move from the previous day. This move lagged the S&P 500's daily gain of 1.02%. Elsewhere, the Dow gained 0.74%, while the tech-heavy Nasdaq lost 0.38%.
Prior to today's trading, shares of the music-streaming service operator had lost 2.02% over the past month. This has was narrower than the Business Services sector's loss of 2.81% and lagged the S&P 500's loss of 0.91% in that time.
Investors will be hoping for strength from Spotify as it approaches its next earnings release. On that day, Spotify is projected to report earnings of -$0.44 per share, which would represent year-over-year growth of 44.3%. Our most recent consensus estimate is calling for quarterly revenue of $3.08 billion, up 19.2% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.32 per share and revenue of $11.19 billion. These totals would mark changes of +62.71% and +24.21%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Spotify. These recent revisions tend to reflect the evolving nature of short-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. 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 remained stagnant. Spotify currently has a Zacks Rank of #3 (Hold).
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 174, putting it in the bottom 32% 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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Spotify Technology (SPOT): Free Stock Analysis Report
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