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Spotify Q3 preview: AI product launch and ad growth could boost shares, says Jefferies

Company Fundamentals
20 Oct 2026
Proactive Investors
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Bullish
Spotify Q3 preview: AI product launch and ad growth could boost shares, says Jefferies

Jefferies expects Spotify's Q3 results to show improved advertising growth, moderated cost pressures, and a potential AI-powered remixing product launch. The bank raised its price target to $620 and maintained a Buy rating, highlighting a favorable setup despite muted investor expectations. Key focus areas include gross margin, expected around 33.1%, and operating expenses, which may peak in Q3 before easing. Additionally, subscription price hikes in the US and UK are anticipated within 6-12 months, while Spotify's platform remains resilient amid AI disruption concerns.

Spotify shares are trading at USD 525.81 on Pluang, up 1.36% in the last day, showing steady investor interest despite mixed order activity. The stock's market cap stands at $106.65 billion, with a typical hold time of 112 days among Pluang users. These figures are current as of Oct 21, 2026 00:11 WIB.

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