Spotify (SPOT) Sees a More Significant Dip Than Broader Market: Some Facts to Know

In the latest market close, Spotify (SPOT) reached $447.38, with a -0.98% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.43%. Meanwhile, the Dow experienced a drop of 0.07%, and the technology-dominated Nasdaq saw a decrease of 0.9%.The the stock of music-streaming service operator has fallen by 5.93% in the past month, lagging the Business Services sector's loss of 4.14% and the S&P 500's loss of 1.98%.Analysts and investors alike will be keeping a close eye on the performance of Spotify in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.99, marking a 610.26% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.39 billion, reflecting a 11.17% rise from the equivalent quarter last year.For the full year, the Zacks Consensus Estimates are projecting earnings of $5.99 per share and revenue of $16.51 billion, which would represent changes of +303.05% and +15.22%, respectively, from the prior year.Investors should also note any recent changes to analyst estimates for Spotify. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.52% lower. Spotify currently has a Zacks Rank of #3 (Hold).Looking at its valuation, Spotify is holding a Forward P/E ratio of 75.46. This represents a premium compared to its industry's average Forward P/E of 25.49.The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 52, finds itself in the top 21% echelons of all 250+ industries.The Zacks Industry Rank is ordered 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.Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Spotify Technology (SPOT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks