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Spotify (SPOT) Soars 3.9%: Is Further Upside Left in the Stock?
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Spotify (SPOT - Free Report) shares rallied 3.9% in the last trading session to close at $508.44. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 23.3% loss over the past four weeks.
The stock is gaining momentum, driven by the company's strong performance in audiobooks, music and podcasts.
This music-streaming service operator is expected to post quarterly earnings of $2.29 per share in its upcoming report, which represents a year-over-year change of +118.1%. Revenues are expected to be $4.38 billion, up 10.9% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Spotify, the consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on SPOT going forward to see if this recent jump can turn into more strength down the road.
Spotify is a member of the Zacks Technology Services industry. One other stock in the same industry, GDS Holdings (GDS - Free Report) , finished the last trading session 6.5% higher at $38.78. GDS has returned 24.5% over the past month.
GDS Holdings' consensus EPS estimate for the upcoming report has changed +37.5% over the past month to -$0.22. Compared to the company's year-ago EPS, this represents a change of +64.5%. GDS Holdings currently boasts a Zacks Rank of #3 (Hold).
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Spotify (SPOT) Soars 3.9%: Is Further Upside Left in the Stock?
Spotify (SPOT - Free Report) shares rallied 3.9% in the last trading session to close at $508.44. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 23.3% loss over the past four weeks.
The stock is gaining momentum, driven by the company's strong performance in audiobooks, music and podcasts.
This music-streaming service operator is expected to post quarterly earnings of $2.29 per share in its upcoming report, which represents a year-over-year change of +118.1%. Revenues are expected to be $4.38 billion, up 10.9% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Spotify, the consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on SPOT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Spotify is a member of the Zacks Technology Services industry. One other stock in the same industry, GDS Holdings (GDS - Free Report) , finished the last trading session 6.5% higher at $38.78. GDS has returned 24.5% over the past month.
GDS Holdings' consensus EPS estimate for the upcoming report has changed +37.5% over the past month to -$0.22. Compared to the company's year-ago EPS, this represents a change of +64.5%. GDS Holdings currently boasts a Zacks Rank of #3 (Hold).