Why Peloton Stock Tumbled This Week
Peloton Interactive (NASDAQ: PTON), a stock that was performing poorly even before the overall market turned sharply downward, has fared just as badly this week. According to data provided by S&P Global Market Intelligence, Peloton lost another 10% in value this week.
In a terrible week for the market generally, consumer discretionary stocks were particularly hard hit. Macroeconomic fears were largely behind this, as many investors worry that inflation will cause consumers to pull back sharply on nonessential items. A Peloton bike might be a convenient way to exercise in one's home, but it's hardly necessary for survival.
Compounding that, late in the week the company's stock was hit with an aggressive price-target cut. The cutter was Evercore ISI analyst Shweta Khajuria, who reduced her Peloton price target by 30%; it's now $14 per share, well down from the previous $20. However, she is maintaining her hold recommendation on the stock.
Source Fool.com
