Peloton Interactive (PTON) has teamed up with Stockholm-headquartered Spotify Technology (SPOT) to integrate its fitness content directly into the audio streaming app. Under this global partnership, more than 1,400 Peloton classes will be available to premium Spotify subscribers, transforming the media services provider into a wellness hub.
Peloton and Spotify have both been under pressure in 2026, with SPOT currently down about 17% versus its year-to-date high and PTON an even steeper 24%.
Is Spotify Stock a Better Pick Than Peloton?
From a valuation perspective, Spotify shares are more attractive to own this year, trading currently at about 32x forward earnings, versus nearly 37x for PTON.
Plus, the Swedish firm’s financials support its valuation as well; in fiscal Q1, SPOT earned a better-than-expected €3.45 ($4.03) per share.
In comparison, Peloton stock is in the early stages of profitability only, expected to post $0.06 a share of earnings for the third quarter on May 7.
More importantly, SPOT’s move into high-margin verticals like audiobooks and now interactive fitness strengthens its path to consistent profitability.
All in all, diversified revenue streams and massive data advantage make Spotify a lower-risk, high-reward play for 2026.
What Else Makes SPOT Shares a Superior Investment?
For disciplined investors, Spotify is a better pick than Peloton shares also because it’s seeing rapid growth in subscriber count, with the number of premium members up 9% year-over-year in Q1.
The music streamer expects 299 million premium subscribers by the end of 2026. In comparison, Peloton ended its latest reported quarter with 5.8 million subscribers, down nearly 6.5% year-on-year.
Additionally, SPOT recently announced a sizable stock buyback plan as well, reinforcing its focus on creating shareholder value, while PTON has no such initiative in place.
And from a technical perspective, Peloton Interactive’s relative strength index (RSI) sits in the late 60s currently, indicating the stock is about to reach “overbought” territory.
How Wall Street Recommends Playing Spotify and PTON Shares
Investors should note, however, that Wall Street firms are fairly bullish on both Peloton and SPOT stock for the next 12 months.
The mean price target of $661 for SPOT signals potential upside of nearly 32% from here, and $8.19 for PTON shares indicates potential for an even higher 54% rally from current levels.
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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