Spotify (SPOT – Free Report) closed at $468.93 in the latest trading session, marking a +0.48% move from the prior day. The stock’s change was less than the S&P 500’s daily gain of 0.55%. Meanwhile, the Dow experienced a drop of 0.06%, and the technology-dominated Nasdaq saw an increase of 1.24%.
Market participants will be closely following the financial results of Spotify in its upcoming release. The company plans to announce its earnings on February 4, 2025. In that report, analysts expect Spotify to post earnings of $1.99 per share. This would mark year-over-year growth of 610.26%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.39 billion, up 11.17% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Spotify. 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.61% lower. Currently, Spotify is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, Spotify is holding a Forward P/E ratio of 53.02. This expresses a premium compared to the average Forward P/E of 25.08 of its industry.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 61, placing it within the top 25% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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