Spotify (SPOT) Gains But Lags Market: What You Should Know
Spotify (SPOT) closed at $236.42 in the latest trading session, marking a +0.19% move from the prior day. This change lagged the S&P 500's 1.61% gain on the day. At the same time, the Dow added 1.51%, and the tech-heavy Nasdaq gained 1.87%.
Coming into today, shares of the music-streaming service operator had lost 13.25% in the past month. In that same time, the Business Services sector lost 4.04%, while the S&P 500 lost 4.08%.
Wall Street will be looking for positivity from SPOT as it approaches its next earnings report date. In that report, analysts expect SPOT to post earnings of -$0.67 per share. This would mark a year-over-year decline of 263.41%. Our most recent consensus estimate is calling for quarterly revenue of $2.34 billion, up 18.85% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$3.66 per share and revenue of $9.28 billion. These totals would mark changes of -218.26% and +22.01%, respectively, from last year.
Any recent changes to analyst estimates for SPOT should also be noted by investors. 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 shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 has moved 2.36% lower within the past month. SPOT 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 164, putting it in the bottom 36% 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.
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 SA (SPOT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
