3 Facts About Peloton You Need to Know

Perhaps no other stock exemplifies the wild impact the coronavirus pandemic had on businesses quite like Peloton Interactive (NASDAQ: PTON). The company saw a surge in demand from stuck-at-home consumers wanting to exercise, and the stock skyrocketed 434% in 2021, nearly achieving a $50 billion market cap.

But the economic reopening led to a drop-off in demand that leadership didn't expect. Couple this with overinvestment in manufacturing, an inventory glut, product recalls, and a bloated cost structure, and the stock has fallen 95% since its January 2021 peak.

With pessimism surrounding Peloton at an all-time high, investors might see a potential buying opportunity. Nonetheless, gaining a better understanding of this consumer discretionary stock is worthwhile. Here are three must-know facts about Peloton.

Source Fool.com