Here's Why Spotify (SPOT) Fell More Than Broader Market

Group 1: Stock Performance - Spotify's stock closed down 1.54% at $710.19, underperforming the S&P 500 which had a daily loss of 0.03% [1] - Over the past month, Spotify shares appreciated by 9.52%, outperforming the Computer and Technology sector's gain of 3.02% and the S&P 500's gain of 0.6% [1] Group 2: Upcoming Financial Results - Spotify's upcoming EPS is projected at $2.34, indicating a 63.64% increase compared to the same quarter last year [2] - The consensus estimate for quarterly revenue is $4.79 billion, up 16.93% from the year-ago period [2] Group 3: Full Year Projections - For the full year, earnings are projected at $9.26 per share and revenue at $19.94 billion, representing changes of +55.63% and +17.6% respectively from the prior year [3] - Recent changes to analyst estimates indicate optimism regarding Spotify's business and profitability [3] Group 4: Valuation Metrics - Spotify has a Forward P/E ratio of 77.88, compared to the industry average of 28.07, suggesting it is trading at a premium [4] - The current PEG ratio for Spotify is 1.89, while the Internet - Software industry has an average PEG ratio of 2.17 [5] Group 5: Industry Ranking - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 53, placing it in the top 22% of over 250 industries [5] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]