There Are Many Reasons to Avoid Peloton Stock
Delivery vans for high-end exercise equipment company Peloton (NASDAQ: PTON) were a common sight during the worst of the pandemic. People had limited options when gyms were closed or operating under severe restrictions, so dropping two grand on a stationary bike and another $39 each month for the necessary subscription was easy to justify, especially considering the bike could be financed.
The pandemic isn't over, but consumer behavior is already beginning to shift. Peloton's growth is set to slow way down as it enters its new fiscal year, and the company's full-year guidance makes a lot of assumptions that appear optimistic to me. That's one reason to avoid Peloton stock, but it's certainly not the only one.
Image source: Peloton.
Source Fool.com
