Spotify (SPOT) closed at $543.66 in the latest trading session, marking a -1.69% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 1.81% for the day. Elsewhere, the Dow saw an upswing of 1.56%, while the tech-heavy Nasdaq appreciated by 2.06%.

The music-streaming service operator's shares have seen an increase of 2.81% over the last month, surpassing the Computer and Technology sector's loss of 7.27% and the S&P 500's loss of 6.14%.

Investors will be eagerly watching for the performance of Spotify in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 29, 2025. The company is forecasted to report an EPS of $2.24, showcasing a 113.33% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $4.38 billion, showing a 10.9% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.13 per share and a revenue of $18.85 billion, representing changes of +70.25% and +11.21%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Spotify. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 1.01% fall in the Zacks Consensus EPS estimate. Right now, Spotify possesses a Zacks Rank of #4 (Sell).

Looking at its valuation, Spotify is holding a Forward P/E ratio of 54.59. This expresses a premium compared to the average Forward P/E of 24.57 of its industry.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 35% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Spotify Technology (SPOT) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research