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

Zacks Equity Research

In the latest trading session, Spotify (SPOT) closed at $157.80, marking a -0.62% move from the previous day. This move lagged the S&P 500's daily gain of 0.67%. At the same time, the Dow added 0.74%, and the tech-heavy Nasdaq gained 0.81%.

Coming into today, shares of the music-streaming service operator had gained 7.92% in the past month. In that same time, the Business Services sector gained 1.59%, while the S&P 500 gained 3.55%.

Investors will be hoping for strength from SPOT as it approaches its next earnings release, which is expected to be February 5, 2020. On that day, SPOT is projected to report earnings of -$0.48 per share, which would represent a year-over-year decline of 217.07%. Our most recent consensus estimate is calling for quarterly revenue of $2.09 billion, up 22.57% from the year-ago period.

It is also important to note the recent changes to analyst estimates for SPOT. These revisions help to show the ever-changing nature of near-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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. SPOT is currently sporting a Zacks Rank of #2 (Buy).

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 106, putting it in the top 42% 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.

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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