Spotify (SPOT) Outperforms Broader Market: What You Need to Know

Group 1: Stock Performance - Spotify's stock closed at $671.52, reflecting a +1.06% change from the previous day's closing price, outperforming the S&P 500's daily gain of 0.53% [1] - Over the past month, Spotify's shares have decreased by 9.49%, while the Computer and Technology sector gained 2.01% and the S&P 500 gained 0.71% [1] Group 2: Upcoming Earnings Report - Spotify is set to release its earnings report on November 4, 2025, with an expected EPS of $1.85, representing a 16.35% increase from the prior-year quarter [2] - The consensus estimate for revenue is $4.89 billion, which is an 11.62% increase from the prior-year quarter [2] Group 3: Annual Estimates - For the annual period, the Zacks Consensus Estimates predict earnings of $5.46 per share and revenue of $19.9 billion, indicating shifts of -8.24% and +17.38% from the previous year, respectively [3] Group 4: Analyst Revisions and Zacks Rank - Recent changes to analyst estimates for Spotify are crucial for investors, as positive revisions indicate analyst optimism about the business [3] - The Zacks Rank for Spotify is currently 4 (Sell), with a downward shift of 5.31% in the consensus EPS estimate over the past month [5] Group 5: Valuation Metrics - Spotify has a Forward P/E ratio of 121.62, significantly higher than the industry average Forward P/E of 28.77 [5] - The company has a PEG ratio of 3.17, compared to the Internet - Software industry's average PEG ratio of 1.95 [6] Group 6: Industry Ranking - The Internet - Software industry, which includes Spotify, ranks in the top 27% of all industries according to the Zacks Industry Rank [6] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1, indicating a favorable environment for companies in higher-ranked industries [7]