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

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In the latest trading session, Spotify (SPOT) closed at $111.04, marking a -1.06% move from the previous day. This change lagged the S&P 500's daily gain of 0.31%. Meanwhile, the Dow gained 0.05%, and the Nasdaq, a tech-heavy index, added 0.14%.

Coming into today, shares of the music-streaming service operator had gained 7.21% in the past month. In that same time, the Business Services sector lost 1.94%, while the S&P 500 lost 1.38%.

Spotify will be looking to display strength as it nears its next earnings release. In that report, analysts expect Spotify to post earnings of -$0.68 per share. This would mark a year-over-year decline of 195.65%. Meanwhile, our latest consensus estimate is calling for revenue of $3 billion, up 6.83% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.59 per share and revenue of $12.43 billion, which would represent changes of +51.64% and +8.87%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Spotify. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

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 is holding a Zacks Rank of #3 (Hold) right now.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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