1 Reason the Market Is Not Keen on Peloton Stock
A onetime market darling in 2020, Peloton Interactive (NASDAQ: PTON) stock is not getting much love lately. The company's shares are down about 40% this year as it faces several challenges, including a product recall, supply-chain constraints, and the effects of reopening economies.
Still, those are short-term issues likely to be resolved before the end of 2022. There could be a longer-run structural headwind that is keeping Peloton's stock grounded. Although the company earns subscription revenue, the majority of its sales come from long-lasting exercise machines, and here's why that could put investors on pause.
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Source Fool.com
