Is Peloton Interactive a Good Investment? By StockNews
© Reuters. Is Peloton Interactive a Good Investment?
Interactive fitness platform provider Peloton Interactive’s (PTON) continued investments in digital content and product launches have helped it grow its subscription base significantly over the past year. However, now that more people are heading back to gyms, interest in at-home fitness equipment and programs appears to be waning. So, the question is, is the stock a wise investment bet now? Read on.Exercise equipment and fitness platform provider Peloton Interactive, Inc. (NASDAQ:) is known for its connected fitness products, such as the Peloton Bike and the Peloton Treadmill, as well as on-demand fitness classes. With a loyal community of more than 5.4 million members, PTON’s stock was one of the top performers amid the pandemic last year.
Although robust investments in content and software features and strong connected-fitness-subscription membership growth have helped its stock gain 72.7% in price over the past year, the stock is down 23.2% over the past six months, and closed yesterday’s trading session at $120.93, 29.3% below its 52-week high of $171.09.
With people returning to gyms now that 70% of U.S. adults have had at least one shot of COVID-19 vaccine, the demand for at-home fitness equipment and services is expected to decline. This could be challenging for the home fitness operator’s business. Furthermore, PTON’s sky-high valuation and ongoing class-action lawsuits could create pessimistic sentiment toward the stock.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Military training jet crashes in Texas, injuring both pilots
A military training jet crashed Sunday in a Dallas suburb, injuring the two pilots and damaging three homes. Both pilots…
Key data on U.S. J&J, Moderna COVID-19 boosters ‘weeks away,’ Fauci says By Reuters
© Reuters. FILE PHOTO: Top infectious disease expert Dr. Anthony Fauci responds to accusations by Sen. Rand Paul (R-KY) as…