Better Buy: Roku vs. Peloton Interactive
Shares of Roku (NASDAQ: ROKU) and Peloton Interactive (NASDAQ: PTON) soared to record highs in 2021. The pandemic generated strong tailwinds for both companies as cooped-up consumers streamed more videos on Roku's devices and exercised more frequently on Peloton's connected bikes. The subsequent buying frenzy in growth stocks -- which was amplified by the rise of commission-free trades, feverish discussions on Reddit, and stimulus checks -- boosted both stocks to bubbly valuations.
That's why it wasn't surprising when both stocks collapsed in 2022 as investors fretted over their cooling growth in a post-pandemic market. Rising interest rates exacerbated that pain by crushing higher-growth stocks.
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Source Fool.com
