Is peloton stock a buy at $130 per share?
Peloton stock currently trades at levels of close to $130 per share, valued at about 8x projected FY’21 revenues. While the valuation multiple might appear rich, considering that Apple – the most established hardware/software/services play – trades at about 6.5x – we think it is largely justified.
Why is peloton stock hitting resistance at its 10-week line?
Before that move, Peloton stock was hitting resistance at its 10-week line. Despite various fundamental catalysts, like the announcement of Peloton's apparel brand launch in early September, PTON stock has failed to generate sustained momentum to the upside. It's roughly 78% below its January 2021 all-time high of 171.09.
Is peloton looking to cut costs?
CNBC reported on Tuesday that Peloton is now working with consulting firm McKinsey & Co. to look for opportunities to cut costs, which could include layoffs and store closures.
What is the peloton guide?
The Peloton Guide will be a strength training camera that can track and follow user movements. The technology also employs machine learning to help users improve their form and will integrate with classes on Peloton's digital fitness platform. Peloton expects to launch this new device in early 2022 at a retail price of $495.
Will Peloton stock ever recover?
A new investor or set of investors will be wasting their money. Even if they can buy shares at a discount, Peloton's business model is so flawed that the company cannot recover. Peloton's shares trade near $17, down from a 52-week high of $129.70.
Is Peloton stock good to buy?
Revenue fell 24% last quarter, but falling sales are not the worst of Peloton's problems. Peloton needs to bring inventory in line with demand and then figure out how to grow from there. These problems will take time to fix, so there should be no rush to buy the stock.
Will Peloton ever go up?
Price Changes On The Horizon Peloton will increase the cost of subscriptions for its Peloton Interactive platform starting in June. Those monthly memberships will jump from $39 to $44. The increase in the connected fitness app follows a cut in price for Peloton's bike and treadmill equipment.
Is Peloton in financial trouble?
Peloton, the maker of tech-connected exercise bikes, saw its losses spiral in the first three months of the year, as the popularity it enjoyed during the pandemic faded. Revenue dropped 24% compared to last year, driven by sinking demand for bikes and treadmills, the firm said.
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Is Pton undervalued?
Wall Street's analysts' consensus price target suggests that Peloton's shares are undervalued, but I disagree. The average sell-side analyst target price for PTON is $47.65, which implies a capital appreciation potential of +78% as compared with the company's last traded share price of $26.70 as of February 2, 2022.
What is the future of Peloton?
Revenue growth accelerated in 2020 and peaked around a year into the pandemic at close to 240% year-over-year. For the fiscal year that ended in July of 2021, Peloton's revenue grew 120% to $4 billion, which is music to most investors' ears.
Can Pton bounce back?
As recently as Mar 29, hard-hit shares in Peloton (NASDAQ:PTON) appeared to be in the middle of a comeback. After hitting new lows during the middle of the month, PTON stock experienced a sharp surge, rising over 50% in a matter of weeks. Yet in recent days, this has reversed.
Is Peloton losing popularity?
Peloton's stock plummeted following its 2019 holiday ad Public outrage over the ad sent Peloton's stock plunging 9%, wiping out $942 million in market value in a single day. But Peloton stood by the commercial, issuing a statement saying it was "disappointed" by how people had "misinterpreted" the ad.
Why is Peloton losing so much?
Gross margin continues to erode. The gross margin for Connected Fitness continued to erode as consumer demand declined for the first half of fiscal 2022, with sales down 11.8% and inventories up 61% compared to the same period last year. Connected Fitness contributed 67% of the total revenue for Peloton.
Is Peloton a failing company?
The short story is Peloton overextended itself and failed to foresee weaker demand once gyms re-opened. In 2020, Peloton's supply chain was struggling to keep up with the unexpected surge in demand created by people suddenly eager to work out at home.
Why is Peloton stock dropping?
However, Peloton's connected fitness products revenue declined by 42% to $594.4 million. With COVID-19 case counts moderating, more people are returning to gyms and fewer people are now buying the company's in-home exercise equipment.
What's going to happen to Peloton?
Peloton will lay off 2,800 employees and replace its CEO, cofounder John Foley. It's a stunning turnaround for a company that became a Wall Street darling during the pandemic. But increased competition and the return to gyms has hurt Peloton's business in recent months.
Does Peloton stock pay dividends?
PELOTON INTERACTIVE (NASDAQ: PTON) does not pay a dividend.
Does Amazon own Peloton?
Amazon is rumored to be preparing a bid for fitness company Peloton, but the deal would likely be a bad idea for the Seattle-based company.
Should I buy or sell Peloton Interactive stock right now?
30 Wall Street analysts have issued "buy," "hold," and "sell" ratings for Peloton Interactive in the last twelve months. There are currently 14 hol...
What is Peloton Interactive's stock price forecast for 2022?
30 Wall Street research analysts have issued twelve-month target prices for Peloton Interactive's stock. Their forecasts range from $11.00 to $120....
How has Peloton Interactive's stock price performed in 2022?
Peloton Interactive's stock was trading at $35.76 at the beginning of the year. Since then, PTON stock has decreased by 70.6% and is now trading at...
When is Peloton Interactive's next earnings date?
Peloton Interactive is scheduled to release its next quarterly earnings announcement on Thursday, August 25th 2022. View our earnings forecast for...
How were Peloton Interactive's earnings last quarter?
Peloton Interactive, Inc. (NASDAQ:PTON) posted its quarterly earnings results on Tuesday, May, 10th. The company reported ($0.98) earnings per shar...
What guidance has Peloton Interactive issued on next quarter's earnings?
Peloton Interactive issued an update on its fourth quarter 2022 earnings guidance on Tuesday, June, 7th. The company provided earnings per share gu...
Who are Peloton Interactive's key executives?
Peloton Interactive's management team includes the following people: Mr. John Paul Foley , Co-Founder & Exec. Chairman (Age 50, Pay $1M) ( Linke...
What is John Foley's approval rating as Peloton Interactive's CEO?
125 employees have rated Peloton Interactive CEO John Foley on Glassdoor.com . John Foley has an approval rating of 92% among Peloton Interactive'...
Who are some of Peloton Interactive's key competitors?
Some companies that are related to Peloton Interactive include Callaway Golf (ELY) , YETI (YETI) , Acushnet (GOLF) , SPORTS DIRECT I/ADR (SDISY...
What is a peloton?
Peloton (NASDAQ: PTON) is an at-home fitness company that sells connected exercise bikes and treadmills and related fitness subscriptions. The stock is up over 4x year-to-date, as the Covid-19 pandemic and related lockdowns caused people to stop going to gyms and fitness centers and work out from home, causing demand for the company’s products and services to soar. Peloton now trades at about 8x projected FY’21 revenues, ahead of Apple (NASDAQ:AAPL) which trades at about 6.5x. Does this make sense? We think it does. In this analysis, we take a look at the company’s financials, future prospects, and valuation. See our interactive analysis Peloton (PTON) Valuation: Expensive Or Cheap? for more details. Parts of the analysis are summarized below.
How much money does Peloton invest in air freight?
However, the company says that it now plans to invest over $100 million in air freight and expedited ocean freight over the next six months to help speed up its deliveries. Separately, Peloton recently raised about $875 million in capital via a convertible debt offering at a 0% rate.
Is Peloton on the Nasdaq?
Secondly, Peloton was recently added to the Nasdaq 100 stock index. This move results in higher demand for the stock from index funds tracking the Nasdaq. Thirdly, the company announced last week that it would be acquiring Precor – one of the world’s largest commercial fitness equipment suppliers.
Is Peloton stock up?
While Peloton’s (NASDAQ: PTON) stock saw a big sell-off after news of Pfizer’s Covid-19 vaccine in early November 2020, the stock is now up a solid 50% since then and is up by roughly 35% over December alone. So what are the trends driving Peloton’s surge? Firstly, the workout-from-home trend has continued to rise, and demand for Peloton’s products continues to significantly outstrip supply. For example, the premium Bike+ exercise bike has seen delivery timelines slip to 10 weeks currently. Secondly, Peloton was recently added to the Nasdaq 100 stock index. This move results in higher demand for the stock from index funds tracking the Nasdaq. Thirdly, the company announced last week that it would be acquiring Precor – one of the world’s largest commercial fitness equipment suppliers. This is being viewed very positively for a couple of reasons.
Is Peloton a good stock to invest in?
So what’s the longer-term outlook for the company? We think Peloton looks like a good bet for long-term investors for a couple of reasons. The stock trades at close to 9x projected FY’21 revenues (fiscal years end in June). Although that looks somewhat high for a company that sells fitness equipment, Peloton justifies this for a couple of reasons. Firstly, Peloton is growing fast, with revenues on track to more than double in FY’21 driven by Covid-19 related demand. Growth should remain strong in the medium term as well, on account of supply chain improvements, the launch of new and lower-priced products, and international expansion. For perspective, Peloton’s revenues are projected to rise 35% in FY’22 per consensus estimates. Secondly, Peloton’s unit economics also look solid, meaning that it should become quite profitable as revenues continue to scale up. Gross margins stood at almost 40% as of the last quarter, with roughly 35% margins for products and 60% margins on connected fitness subscriptions. That’s even higher than consumer technology behemoth Apple (NASDAQ:AAPL), which has gross margins of about 39%.
Is Peloton growing?
Firstly, Peloton is growing fast, with revenues on track to more than double in FY’21 driven by Covid-19 related demand. Growth should remain strong in the medium term as well, on account of supply chain improvements, the launch of new and lower-priced products, and international expansion.
Does Peloton have a vertical model?
Margins probably have a lot more room to expand as revenues increase, given Peloton’s solid unit economics. Peloton has a vertically integrated model which includes hardware, software, and subscription services, somewhat similar to tech titan Apple AAPL -1.5%.
Shares of the high-end fitness platform have nearly tripled in 2020, as the company itself is flexing its muscles with smart moves that should continue to pay off in fiscal 2021
Sometimes a blowout isn't enough. Peloton Interactive ( PTON -1.15% ) came through with one of the best earnings reports of the summer last week, but Wall Street wasn't impressed.
Class act of spinning class
It's not a surprise to see Peloton fare well in the new normal. If you can afford the four-figure price tags on the bikes and treads as well as the $39-a-month connected fitness subscription Peloton makes sense as a way to duplicate an interactive workout experience from home.
NASDAQ: PTON
Peloton's popularity is exploding. Revenue shot 172% higher in its latest quarter, and it finally came through with its first quarterly profit. Its results trounced analyst targets on both ends of the income statement.
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3 Reasons PTON Stock Can Rally
The reasons that PTON stock could continue higher are relatively straight-forward.
A Look at the Technicals
On the chart, Peloton has obviously taken a hit lately. Long-term bulls may consider starting to nibble on this dip, with the realization that more selling could be on the way.
What happened to Peloton stock in November?
Peloton stock cratered in November after the company reported wider-than-expected losses on Q1 earnings. On the quarterly call, executives lowered their annual revenue outlook by about $1 billion.
What is the Peloton Guide?
The Peloton Guide will be a strength training camera that can track and follow user movements. The technology also employs machine learning to help users improve their form and will integrate with classes on Peloton's digital fitness platform.
How many members does Peloton have?
Peloton Interactive ( PTON) is arguably one of the hottest names in the fitness space. With more than 5.4 million members, the nine-year-old global brand is looking to expand its reach. Peloton stock was one of the bright spots in the coronavirus stock market rally, with a gain of more than 440% in 2020. After reaching a peak in January 2021, PTON stock has been on a steep, downhill ride.
How much is the Peloton 2022?
Peloton expects to launch this new device in early 2022 at a retail price $495. Users will also need to purchase a Peloton Guide membership for $12.99 per month. PTON stock edged down slightly on the news.
What is the IBD rating of PTON?
The IBD Stock Checkup tool shows that PTON stock has an IBD Composite Rating of 11 out of a best-possible 99. The rating measures a stock based on the most important fundamental and technical stock-picking criteria.
Why did PTON stock miss?
Weakened sales growth and the ongoing supply chain backups seemed to contribute to the earnings miss for PTON stock. The fitness platform has seen increased competition as more people return to in-person gyms and workout classes. More companies offering connected-fitness products have entered the market as well.
How much does a Peloton membership cost?
Peloton generates most of its revenue through sales of bikes and treadmills, which range in price from $1,895 to $4,295. The All-Access membership for owners of its expensive equipment runs $39 a month. A digital membership — with no access to bike or tread classes — is $12.99 a month.