Spotify (SPOT) shares have been rather muted in 2026, but the derivatives market believes some near-term recovery is possible after the company’s earnings event on Oct. 22. Consensus is for SPOT to record $3.10 in earnings per share (EPS) for its third financial quarter, which would represent about a 19% decline on a year-over-year basis.
Ahead of the quarterly print, Spotify stock is down roughly 10% versus the start of this year.
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www.barchart.comOptions Sentiment Remains Bullish for Spotify Stock
The options market seems to believe the anticipated EPS decline is already priced into SPOT shares at current levels. The put-to-call ratio on contracts expiring Oct. 23 sits at 0.35x as of writing, indicating a strong bullish skew, given it basically means traders are betting increasingly more on call options than put options. And the upper price on those contracts, according to the latest data from Barchart, is set at nearly $569 currently, indicating potential for a 7.5% rally on the back of the Q3 release.
That said, Spotify insiders have predominantly unloaded SPOT shares in the trailing three months, which suggests executives do not find them as attractive as options traders at the current price.
Jefferies Raises Price Target on SPOT Shares
Jefferies senior analyst James Heaney agrees with the bullish options market sentiment, though. In a research note on Tuesday, he maintained a “Buy” rating on Spotify shares and raised his price target on the music streaming giant to $620, signaling potential for about an 18% rally from here.
Spotify’s platform is “highly defensible against AI disintermediation fears,” Heaney told clients.
In fact, the music streaming giant is actively embracing artificial intelligence (AI); its upcoming AI-enabled remixing product could help deepen user engagement and strengthen subscriber retention, which may unlock further upside in its share price, he added.
How Wall Street Recommends Playing Spotify
Other Wall Street analysts also agree with Heaney’s constructive view on Spotify for the remainder of 2026.
According to Barchart, the consensus rating on SPOT stock sits at “Moderate Buy,” with the mean price target of about $601 indicating potential upside of about 15% from here.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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