Why Peloton Stock Dropped 12% in March
Shares of connected fitness company Peloton Interactive (NASDAQ: PTON) fell another 12% in March according to data provided by S&P Global Market Intelligence. Investors have been pessimistic about Peloton stock, and it dropped along with the market in the wake of the banking crisis. However, it was rising steadily throughout the year, and it's already on its way back, up 3% so far in April.
Peloton was a top pandemic stock that benefited from closed gyms. It posted triple-digit sales growth for several consecutive quarters, and management made a few mistakes along the way as it dealt with the unexpected surge. The stock then came crashing down as demand melted when gyms reopened, and the business was left with unneeded inventory and infrastructure, as well as machines that had to be recalled.
The company brought in a new CEO last year to get it back on track, and so far the results have been promising.
Source Fool.com
