Spotify (SPOT) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Spotify (SPOT) closed at $234.03, marking a -1.64% move from the previous day.
In the latest trading session, Spotify (SPOT) closed at $234.03, marking a -1.64% move from the previous day. This change lagged the S&P 500's 0.26% loss on the day. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.04%.
Heading into today, shares of the music-streaming service operator had gained 4.1% over the past month, lagging the Business Services sector's gain of 4.8% and the S&P 500's gain of 4.82% 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.
Investors might also notice recent changes to analyst estimates for Spotify. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Spotify currently has a Zacks Rank of #4 (Sell).
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 178, putting it in the bottom 30% 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.
To follow SPOT in the coming trading sessions, be sure to utilize Zacks.com.
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