3 Ways Peloton Can Bounce Back After the Crash

Peloton's (NASDAQ: PTON) business seemed tailor-made to thrive during a pandemic. The company sells in-home interactive exercise equipment, a product high in demand when gyms close their doors. Unsurprisingly, sales soared for Peloton. So much so that it had trouble keeping up with demand.

It invested in expanding capacity to correct what management saw as a persistent imbalance between demand and supply. That expansion was an overshoot, as demand quickly slowed when gyms started reopening. At least when demand outstripped supply, it was not hurting Peloton's financial position. With too much capacity, the expenses are hurting the bottom line.

Peloton's stock has been down by 94% as a result. However, all is not over for Peloton. Here are three ways it can bounce back after the crash.

Source Fool.com