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Spotify (SPOT) Gains But Lags Market: What You Should Know

Spotify (SPOT) closed the most recent trading day at $271.88, moving +0.21% from the previous trading session. This change lagged the S&P 500's 0.52% gain on the day. At the same time, the Dow added 0.54%, and the tech-heavy Nasdaq gained 0.19%.

Prior to today's trading, shares of the music-streaming service operator had gained 15.43% over the past month. This has outpaced the Business Services sector's loss of 9.77% and the S&P 500's gain of 4.79% in that time.

SPOT will be looking to display strength as it nears its next earnings release, which is expected to be October 29, 2020. The company is expected to report EPS of -$0.59, down 243.9% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.34 billion, up 18.83% from the prior-year quarter.

SPOT's full-year Zacks Consensus Estimates are calling for earnings of -$3.45 per share and revenue of $9.29 billion. These results would represent year-over-year changes of -200% and +22.03%, respectively.

Investors should also note any recent changes to analyst estimates for SPOT. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. SPOT is currently a Zacks Rank #3 (Hold).

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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