Could Peloton Be a Millionaire-Maker Stock?
Peloton Interactive's (NASDAQ: PTON) stock price soared last year as the pandemic sparked brisk sales of its high-end exercise bikes, which locked users in with monthly subscriptions to its streaming classes.
Peloton went public in September 2019 at $29 per share, and initially dropped below its IPO price as analysts questioned its pricing power, competitive moat, and valuation. But as the pandemic spread and gyms closed down, sales of Peloton's bikes accelerated and caused investors to take a second look.
Peloton's share prices surged more than 430% in 2020 and ended the year north of $150. But this year, the stock has shed about a quarter of its value as rising bond yields have sparked a rotation from growth to value stocks. Investors have also abandoned pandemic-oriented stocks and focused on reopening plays instead.
Source Fool.com