Peloton Interactive (NASDAQ: PTON) is attempting to shift its business model from one based around selling physical exercise devices to one built around subscriptions. That's not a bad plan, but the sale of its namesake exercise bikes, treadmills, and other devices is still a vitally important way to build a strong subscriber base. That's why management was so happy to report that sales of these items increased 77% in the fiscal second quarter of 2024. That sounds great, and it is, but it isn't nearly as great as the company wants you to think it is.

Like all companies, Peloton tries to emphasize the things that are going well. That's completely normal and expected behavior. The problem arises with investors, who often believe what companies say without digging into the story to make sure the cheerleading is actually backed up by the numbers. Usually it is, but sometimes management cherry-picks data in an effort to put its best foot forward.

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Source Fool.com