Spotify (SPOT) Rises Yet Lags Behind Market: Some Facts Worth Knowing

Company Performance - Spotify's stock closed at $487.51, reflecting a +0.41% change from the previous day, which is lower than the S&P 500's gain of 0.88% [1] - Over the past month, Spotify's shares have increased by 6.41%, outperforming the Business Services sector's gain of 0.03% and the S&P 500's gain of 1.17% [1] Upcoming Earnings - Spotify is set to release its earnings report on February 4, 2025, with projected earnings of$ 1.91 per share, indicating a year-over-year growth of 589.74% [2] - The consensus estimate for Spotify's revenue is $4.36 billion, representing a 10.39% increase compared to the same quarter last year [2] Analyst Estimates - Recent adjustments to analyst estimates for Spotify reflect evolving short-term business trends, with positive revisions indicating analyst optimism about the company's profitability [3] - The Zacks Rank system, which incorporates these estimate changes, provides a rating system that can help investors make informed decisions [4] Valuation Metrics - Spotify currently has a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate moving 0.7% lower over the last 30 days [5] - The company's Forward P/E ratio stands at 55.07, which is a premium compared to its industry's Forward P/E of 23.37 [5] Industry Context - The Technology Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 65, placing it in the top 26% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]