Does Peloton's Valuation Make It a Buy?
Fitness company Peloton Interactive (NASDAQ: PTON) has been a roller-coaster ride for investors since the pandemic, rising as high as $171 per share before sliding to under $50 after its most recent quarter.
The volatility might be unsettling to investors, but sometimes fighting the fear and the stomach knots can be rewarding over the long term. Peloton's business has stumbled, but at near $50, the digital fitness business alone could justify owning the stock without factoring in the other good things happening at the company.
Peloton benefited from the COVID-19 pandemic, where lockdowns prevented people from going to the gym, leading them to use Peloton to get their workouts in. Peloton's fiscal calendar turns over at the end of June (six months ahead of real time), so we can see below how sales and member engagement peaked at the height of the pandemic, the winter of 2020 and early 2021. These are the 2021 second and third quarters below.
Source Fool.com
