Down 74% in 2022, 1 High-Risk High-Reward Stock to Buy Now
Peloton Interactive (NASDAQ: PTON) was arguably one of the greatest beneficiaries of the coronavirus pandemic -- at least, that's how it seemed. The surge in new customers and purchases set off by gym closures and lockdowns led Peloton to make decisions that have caused tremendous downside.
Management invested hundreds of millions in adding capacity to fulfill the boom of interest in its products. Just as it got enough inventory to serve all customers, the purchases suddenly stopped. As a result, Peloton is stuck with too much inventory, and capacity it does not need. This chain of events has Peloton's stock down 74% in 2022. Here's why it's a buying opportunity for long-term investors with a high-risk tolerance.
Notably, Peloton sells interactive exercise equipment and a subscription to live and recorded classes accessed through large screens on its bikes and treadmills. It's a convenient alternative for folks who want to exercise but wish to do so in the comfort of their own home. Driving to the closest gym, looking for parking, and hoping the machine you need is available are all detriments to exercising. More than a few times, I have skipped a workout because of the time involved in the process above.
Source Fool.com
