Peloton hits two-month high on Spotify partnership announcement

Shares of Peloton Interactive, the small-cap fitness equipment maker and creator of fitness content, climbed 2.5% on Monday to reach a two-month high. Markets were reacting to the company’s announcement of a partnership with Spotify. Wall Street analysts see room for Peloton stock to rise another 48% from here.

Shares of Peloton rose 2.5% on Monday to $5.31 per share, their highest level since early February.

The company said its fitness and wellness content is now available to Spotify Premium subscribers in most countries where the streaming platform operates.

The deal marks a significant step in Peloton’s international expansion, according to the company’s press release. “With this partnership, we are instantly activating a global footprint,” the company quoted Chief Commercial Officer Dion Camp Sanders as saying.

The partnership is expected to help drive sales of Peloton equipment and content in previously untapped markets while reinforcing the company’s transition toward a more diversified business model, according to the release.

Peloton has spent years trying to overcome a post-pandemic sales slump. In May 2024, the company announced a restructuring plan aimed at reducing annual expenses. At the same time, it named former Apple Fitness+ cofounder Peter Stern as CEO. The announcement sent Peloton shares up by roughly a third.

A year later, in the summer of 2025, Peloton unveiled an AI innovation strategy, and by autumn introduced an updated lineup of fitness equipment featuring its Peloton IQ AI and computer vision system.

“This is the start of a new chapter for Peloton,” Stern said in a statement at the time. “This is more than an upgrade; it’s a relaunch.”

Investors were not convinced by the optimism. Peloton shares fell 10% on the day the company unveiled the new products as the company raised equipment prices by an average of 11% and subscription fees by roughly 19%, Bloomberg reported.

In early February, Peloton said in its latest quarterly earnings, for the second quarter of its fiscal 2026, that paid subscriptions fell 7% year over year to 2.66 million. The fitness equipment maker had projected that the price increases would trigger a steeper decline.

Peloton shares are down 13% year to date. The sharpest decline came on February 5, when the company released the quarterly results and the stock plunged nearly 26% to $4.39 per share.

Following the report, Citigroup cut its target price on Peloton shares by nearly 40% to $5 per share, according to Yahoo Finance data. Around the same time, Zacks upgraded the stock from “hold” to “buy,” citing an increase in Wall Street’s consensus earnings-per-share forecast for Peloton.

Buying Peloton shares remains a risky bet, writes Motley Fool contributor Neil Patel. He pointed to the company’s guidance for a 3% revenue decline in fiscal 2026. If that happens, it would mark Peloton’s fifth consecutive year of falling revenue, which Patel said should now be viewed as a trend rather than a temporary setback.

Peloton currently has 11 “hold” ratings, 10 “buy” calls, and one “sell” recommendation, according to MarketWatch data. The average target price stands at $7.88 per share, implying 48% upside.