Earnings Estimates Rising for Spotify (SPOT): Will It Gain?

Core Viewpoint - Spotify (SPOT) is positioned as a strong investment opportunity due to significant upward revisions in earnings estimates, indicating a positive outlook for the company's financial performance [1][2]. Current-Quarter Estimate Revisions - The earnings estimate for the current quarter is $2.17 per share, reflecting a substantial increase of +106.67% compared to the same period last year [4]. - Over the past 30 days, the Zacks Consensus Estimate for Spotify has risen by 14.29%, with two estimates increasing and two decreasing [4]. Current-Year Estimate Revisions - For the full year, Spotify is projected to earn $9.69 per share, which is a +62.86% increase from the previous year's figure [5]. - The consensus estimate has improved by 9.34% over the past month, with three estimates moving higher and three going lower [5]. Favorable Zacks Rank - Spotify currently holds a Zacks Rank 2 (Buy), indicating a favorable position based on the positive estimate revisions [6]. - Research indicates that stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) tend to outperform the S&P 500 significantly [6]. Bottom Line - Spotify shares have increased by 30.5% over the past four weeks, suggesting strong investor confidence driven by the positive earnings estimate revisions [7].