#2 - Peloton (NASDAQ:PTON)
The next stock on the list has been another pandemic winner. Peloton (NASDAQ:PTON) went from being the butt of jokes to having the last laugh. Millions of Americans moved their fitness routines into their homes, and Peloton bikes became a beneficiary.
Of course, that brings up the recurring revenue theme again. Because once consumers have laid out the money for one of the company’s bikes, they’re likely to use it.
Like Netflix, shares of PTON stock are down approximately 21% since their year-to-date high in October. One of the “sell the news” items weighing on the stock are reports that consumers are canceling orders due to long shipping lead times.
The shipping problem will likely ease as a Covid-19 vaccine becomes more widely available. However, that is also likely to bring fitness enthusiasts back to the gym. Plus, Peloton doesn’t have a moat, and lower-priced (although perhaps not with the same quality) competitors are proliferating the home gym market.
Either way, it seems unlikely that Peloton will get the same holiday boost that it received last year. And that means if you haven’t already sold some PTON stock, it may be time to do so.
About Peloton Interactive
Peloton Interactive, Inc operates interactive fitness platform in North America and internationally. The company offers connected fitness products with touchscreen that streams live and on-demand classes under the Peloton Bike, Peloton Bike+, Peloton Tread, Peloton Tread+, Peloton Guide, and Peloton Row names.
Read More - Current Price
- $3.13
- Consensus Rating
- Hold
- Ratings Breakdown
- 5 Buy Ratings, 12 Hold Ratings, 3 Sell Ratings.
- Consensus Price Target
- $7.40 (136.4% Upside)
