Spotify(SPOT) ZACKS·2025-06-09 22:51Company Performance - Spotify's stock closed at $699.11, reflecting a -1.85% change from the previous day, which is less than the S&P 500's daily gain of 0.09% [1] - Over the past month, Spotify's stock has increased by 9.87%, underperforming the Computer and Technology sector's gain of 11.17% but outperforming the S&P 500's gain of 7.21% [1] Earnings Estimates - Analysts anticipate Spotify will report an EPS of $2.27, representing a 58.74% increase compared to the same quarter last year [2] - Revenue is expected to be $4.79 billion, indicating a 16.93% growth year-over-year [2] - Full-year estimates project earnings of $9.72 per share and revenue of $19.94 billion, reflecting year-over-year changes of +63.36% and +17.6%, respectively [3] Analyst Sentiment - Recent changes to analyst estimates for Spotify suggest a shifting business landscape, with positive revisions indicating a favorable business outlook [3] - The Zacks Consensus EPS estimate has decreased by 1.63% over the past month, and Spotify currently holds a Zacks Rank of 3 (Hold) [5] Valuation Metrics - Spotify has a Forward P/E ratio of 73.27, which is significantly higher than its industry's Forward P/E of 29.83, indicating a premium valuation [6] - The company has a PEG ratio of 1.78, compared to the Internet - Software industry's average PEG ratio of 2.39 [7] Industry Context - The Internet - Software industry is part of the Computer and Technology sector, currently holding a Zacks Industry Rank of 57, placing it in the top 24% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]