1 Incredibly Cheap Stock to Avoid Like the Plague In 2023
After its initial public offering in September 2019, Peloton Interactive (NASDAQ: PTON) skyrocketed in value right out of the gate. From that IPO date to its all-time high in January 2021, the stock was up an incredible 550%, as Wall Street fell in love with the fitness disruptor and its outstanding growth trajectory. But it's been a downward spiral since then, as shares are down a whopping 92% over the past two years.
Even though Peloton's stock trades at a ridiculously cheap price-to-sales multiple of 1.2 today, investors should avoid owning the business right now, no matter how tempting the low valuation might be. Here's why this is the smart investing approach in 2023.
Readers are probably all too familiar with Peloton's rapid rise in popularity. The company was certainly boosted by pandemic-fueled demand, but it was growing like gangbusters even before the health crisis. Revenue was increasing at triple-digit year-over-year rates, Peloton couldn't keep up with the huge demand for its products, and the membership base was soaring.
Source Fool.com
