Where Will Peloton Stock Be in 3 Years?

It's hard to understate how dramatic Peloton Interactive's (NASDAQ: PTON) rise and fall over the past few years has been. By the end of 2020, the stock was up 489% from its price at its initial public offering. But as of this writing, shares are down 96% off of their all-time high. The business went from Wall Street darling to now being in the midst of a major strategic shift. 

Assuming Peloton is able to successfully execute its ongoing turnaround strategy and get the business on a better path, where could the consumer discretionary stock be three years from now? Investors could be handsomely rewarded. Here's why that could be the case. 

The name of the game for Peloton is to find ways to attract more connected-fitness subscribers, which are users who own a piece of equipment and pay the monthly membership fee for access to the workout content. As of March 31, the company had just over 3.1 million of these subscribers, good for a 5% year-over-year increase. This figure has steadily climbed over the years, even as Peloton's financials have struggled. 

Continue reading

Source Fool.com