Spotify (SPOT) ended the recent trading session at $479.77, demonstrating a -1.26% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.42%. Elsewhere, the Dow saw an upswing of 0.29%, while the tech-heavy Nasdaq appreciated by 0.29%.
Shares of the music-streaming service operator witnessed a loss of 0.02% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.85%, and the S&P 500's gain of 2.2%.
The investment community will be paying close attention to the earnings performance of Spotify in its upcoming release. The company is slated to reveal its earnings on August 4, 2026. It is anticipated that the company will report an EPS of $3.29, marking a 785.42% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $5.6 billion, showing a 17.66% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.62 per share and revenue of $22.67 billion, indicating changes of +22.96% and +16.66%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Spotify should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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, there's been a 0.42% fall in the Zacks Consensus EPS estimate. As of now, Spotify holds a Zacks Rank of #4 (Sell).
Digging into valuation, Spotify currently has a Forward P/E ratio of 33.24. This indicates a premium in contrast to its industry's Forward P/E of 19.73.
It's also important to note that SPOT currently trades at a PEG ratio of 1.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.06.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 92, positioning it in the top 38% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Spotify Technology (SPOT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).