Should Investors Buy Peloton Stock After Its 96% Plunge? Here's the Good News and the Bad News.
Peloton is struggling to turn its slumping exercise equipment sales around.
Overview
Peloton Interactive (NASDAQ: PTON) stock went public in September 2019 priced at $29, but by the end of 2020, it had reached a record-closing high of almost $163. The COVID-19 pandemic fueled a surge in demand for the company's stationary exercise bikes, treadmills, and rowing machines, because they helped fitness enthusiasts maintain their workout routines at home.
But lockdowns and social restrictions gradually ended in 2022, and demand for Peloton's exercise equipment subsequently collapsed. The company quickly found itself losing billions of dollars per year because sales fell so sharply, threatening its very survival.
Details
As a result, Peloton stock has plunged by 96% from its peak. But although the company continues to struggle with weak sales, its bottom line has improved significantly. Could this be the ultimate buying opportunity for investors?
Source
Originally published at www.fool.com.