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Amid the recent stock market downturn, Spotify stock (SPOT) continues to hold up. Investors are pouring into SPOT for safe harbor, analysts say.
Despite the tech sector and the broader stock market’s continued turmoil, investors are finding safe harbor in Spotify (SPOT) and Netflix (NFLX). Both stocks continue to outperform the market, and Wall Street remains confident in their future, even in the face of economic uncertainty.
As of this writing, SPOT remained above $500, while NFLX stayed above $800. That’s despite both stocks taking a dive today amid the economic storm, due in no small part to President Trump’s broad tariffs.
Anaylsts Matthew Thornton and Yiwen Zhang predict both companies’ revenue to grow or remain neutral despite “short-term challenges” they are “well-suited to weather.” Thornton is positive on SPOT’s long-term outlook, and that Netflix’s revenue will grow at a compound annual rate of 9% over the next decade.
Meanwhile, Spotify’s earnings report is set to be unveiled on April 29. Investors are eagerly watching the company’s performance in the lead-up to its earnings report. Its upcoming EPS is projected at $2.24, an 113.33% increase compared to the same quarter in the previous year. The latest consensus estimate predicts revenue in the $4.38 billion range, signifying a 10.9% increase compared to the same quarter in the previous year.
Taking the full year into account, Zacks Consensus Estimates suggest expected earnings of $10.13 per share with revenue of $18.85 billion. Such totals would signify changes of +70.25% and 11.21%, respectively, from the previous year.
Notably, recent changes to analyst estimates for Spotify help to show the ever-changing nature of business trends near-term. Investors aim to capitalize on this as the countdown to Spotify’s latest earnings report continues. With over 675 million monthly active users (MAUs), Spotify remains the dominant player in the audio streaming industry. Spotify diversifying its revenue streams beyond just the music industry has helped with that, too.
