Does the Precor Acquisition Make Peloton a Buy?
The stock of Peloton Interactive (NASDAQ: PTON) soared after the maker of high-end home fitness equipment announced it was buying smaller rival Precor for $420 million. Investors bet that Peloton would gain entry into the commercial market of hotels, spas, and fitness clubs that was largely closed off to it before.
Yet unlike the home fitness industry, which became enormously popular during the COVID-19 pandemic, the commercial fitness market was severely damaged, and many gyms and fitness clubs went out of business.
So is Peloton's purchase of Precor as good as it seems? Let's find out.
Source Fool.com
