Why Peloton Stock Jumped on Friday
Peloton Interactive (NASDAQ: PTON) shares beat the market on Friday as the stock gained 11% by 1 p.m. ET compared to a 1.2% increase in the S&P 500. That spike only erased a small portion of losses for the home-fitness specialist. The stock is down over 70% so far in 2022 even after today's spike.
Friday's rally reflected slightly more optimism on the part of investors that this beaten-down stock might recover. However, the latest operating momentum trends suggest things could get worse for Peloton.
Shares have been reeling in recent months as Peloton struggled to boost sales of its exercise platforms or membership subscriptions to its services. Product revenue slumped by 55% in the fourth-quarter period that ended in July, the company said in late August. Losses ballooned as well, although management sought to put a more positive spin on results, in part by pointing out that quarterly cash burn has improved to $412 million from approximately $650 million.
Source Fool.com
