Will Peloton Interactive Keep Winning in 2021?
Exercise equipment maker Peloton Interactive (NASDAQ: PTON) crushed it in 2020. The stock rose 432%, driven by fantastic earnings reports in September and November. The company's treadmills and stationary bikes with large screens for entertainment or instruction videos hit a nerve during the coronavirus lockdowns. Will the at-home workout craze have legs in 2021 and beyond, or is Peloton headed for slower growth at this point?
I would call Peloton a fad if the demand for media-ready exercise equipment had died out after a couple of months. That's not what's happening here. Peloton is still selling gear faster than it can make it, leaving customers waiting between 6 to 10 weeks for delivery.
That's a nice problem to have, but Peloton's management would prefer to fill orders within a couple of weeks and keep the revenue stream flowing. The company is about to open a new factory in China that should be able to finish 1.5 million bikes or treadmills per year.
Source Fool.com
