Why I'm Avoiding Peloton Stock Like the Plague
Peloton Interactive (NASDAQ: PTON) became one of the hottest growth stocks during the pandemic as the temporary closures of gyms boosted sales of its connected exercise bikes and subscriptions. However, growth subsequently stalled out as the pandemic lessened, gyms reopened, and more competitors entered the connected fitness market.
As a result, Peloton's stock plummeted from its all-time high of $167.42 last January to about $8 today. That's also far below its IPO price of $29. Some value-seeking investors might think Peloton looks cheap at less than one time this year's sales, but I'd still avoid it for five simple reasons.
Image source: Peloton.
Source Fool.com
