Moreover, considering its lean profit margins, I think it might be wise to wait for a better entry point in the stock. ( NFLX ) in terms of subscriber growth slowdown. Īlthough the company demonstrated sound financial growth in its last reported quarter, its lower-than-expected subscriber additions raise concerns about whether it is on the same trajectory as Netflix Inc. View all the top-rated stocks in the Entertainment – Radio industry here. The industry is rated A.Ĭlick here to see the additional POWR Ratings for SPOT (Growth, Momentum, Stability, and Quality).

In the 6-stock Entertainment – Radio industry, SPOT is ranked last. SPOT has a Value and Sentiment grade of C, which is in sync with the stock’s mixed valuations and analyst sentiments. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree. SPOT has an overall C rating, which equates to Neutral in our proprietary POWR Ratings system. SPOT’s trailing 12-month gross profit margin and net income margin of 26.65% and 0.73%, respectively, are 47.66% and 86.48% lower than their respective industry averages of 50.93% and 5.37%. The consensus revenue estimate for the same periods of $3.12 billion and $12.27 billion, respectively, indicate 10% and 14.9% year-over-year increases.Īlthough the Street’s EPS estimate is expected to remain negative at least until fiscal 2022, its EPS is expected to increase 137.8% per annum over the next five years. 30, 2022, and its fiscal year 2022 reflect a rise of 69.6% and 50%, respectively, from their prior-year periods. Furthermore, the consensus EPS estimates for the quarter ending Sept.

However, the $2.96 billion consensus revenue estimate for the same quarter reflects a 10.4% improvement from the prior-year quarter. The consensus EPS estimate for the quarter ending June 2022 indicates a 181.8% year-over-year decrease. However, the stock’s 1.72 forward Price/Sales multiple is 17.2% higher than the 1.47 industry average. In terms of its forward EV/Sales, SPOT is currently trading at 1.45x, which is 31% lower than the 2.10x industry average.

Is spotify stock a buy