Spotify (SPOT) Beats Stock Market Upswing: What Investors Need to Know

Company Performance - Spotify's stock closed at $574.25, reflecting a +1.99% change from the previous day's closing price, outperforming the S&P 500 which gained 0.13% [1] - Over the past month, Spotify's stock has decreased by 3.95%, which is better than the Computer and Technology sector's decline of 9.27% and the S&P 500's drop of 6.3% [1] Upcoming Financial Results - Spotify is set to announce its earnings on April 29, 2025, with an expected EPS of$ 2.31, indicating a 120% increase year-over-year [2] - Revenue for the upcoming quarter is projected to be $4.41 billion, representing an 11.64% increase compared to the same quarter last year [2] Annual Forecast - For the entire year, the Zacks Consensus Estimates predict earnings of$ 10.37 per share and revenue of $18.93 billion, reflecting increases of +74.29% and +11.68% respectively compared to the previous year [3] Analyst Projections - Recent shifts in analyst projections for Spotify are important as they often indicate changes in near-term business trends, with positive estimate revisions suggesting optimism about the company's outlook [4] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that 1 stocks have delivered an average annual return of +25% since 1988, with Spotify currently holding a Zacks Rank of 3 (Hold) [6] - Over the past month, the Zacks Consensus EPS estimate for Spotify has increased by 1.29% [6] Valuation Metrics - Spotify has a Forward P/E ratio of 54.32, which is a premium compared to the industry average Forward P/E of 24.35 [7] - The Internet - Software industry, part of the Computer and Technology sector, currently holds a Zacks Industry Rank of 72, placing it in the top 30% of over 250 industries [7][8]