Share prices of Peloton Interactive (NASDAQ: PTON) skyrocketed after the embattled company reported that it grew its revenue marginally in its fiscal 2024 fourth quarter and moved closer to profitability. The stock rose more than 35% during the trading session that followed its Q4 report's release, but the stock is still trading down more than 25% on the year.

Could this be the right time for investors to hop on the stock and take a ride?

Peloton was hit with several issues over the past few years. Two of the big ones coming out of the COVID-19 crisis were inflated inventory levels and falling gross margins. The company mistook the pandemic's pull-forward in demand for a "new normal" condition. As a result, it manufactured too much inventory, which it then had to store at high costs. This led to negative gross margins on its product sales from its fiscal 2021 until fiscal 2023. In fiscal 2024, Peloton was able to reverse that.

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Source Fool.com