2 Big Reasons to Buy Peloton Stock on the Dip
When one looks back on the history of the stock market and how it performed during the coronavirus pandemic, there probably won't be a more emblematic business to look at than Peloton Interactive (NASDAQ: PTON). The at-home fitness equipment maker soared 434% in 2020 and almost reached a market cap of $50 billion, only to come crashing down since. As of this writing, the stock is down 94% from its peak, and the business is worth $3.2 billion.
When people were stuck at home and needed a way to work out, demand for Peloton surged. Management, however, mistakenly extrapolated heightened consumer interest in a more normalized world. The result has been sluggish sales, mounting losses, and a company that has fallen significantly out of favor with Wall Street.
Despite these troubles, I believe there are two important reasons investors should consider buying this consumer discretionary stock now. Let's take a closer look.
Source Fool.com
