Is Peloton Stock a Buy?
Peloton Interactive (NASDAQ: PTON), once a Wall Street darling that saw its stock surge 434% in 2020, has come crashing down almost as fast as its rise. Shares are down 95% from their all-time high set nearly two years ago as the business grapples with a new post-pandemic reality that is making it extremely difficult to drive higher sales and achieve profitability.
Let's examine this consumer discretionary stock to see if it is a good investment right now.
Perhaps no other business benefited more from the coronavirus pandemic than Peloton. People needed to find ways to work out at home, and so sales surged 100% in its fiscal 2020 (ended June 30 of that year) and 120% in fiscal 2021. The company was posting healthy gross margins, and its operating margin was quickly approaching a break-even point. Peloton was flying high as its subscriber base continued soaring at a rapid clip.
Source Fool.com
