Forget Peloton, This Gym Stock Might Be a Post-Lockdown Workout Winner
There's no doubt Peloton Interactive (NASDAQ: PTON) was the champion among exercise companies during 2020's prolonged COVID-19 lockdowns, with its share price exploding 220% by the end of fiscal 2020. These blazing gains were achieved in just four months, between COVID-19's arrival in March and the fiscal year's end on June 30.
However, now that pandemic panic is fading and the government has eased the shutdown of the economy, Peloton's performance is stumbling heavily. Other companies, such as gym franchisor F45 Training Holdings (NYSE: FXLV), appear to be flexing their muscles in post-lockdown 2021. F45, in fact, just made an acquisition that could help it win market share from Peloton. Here's a look at why its business model may be giving it an advantage over last year's big winner.
Following a first-quarter fiscal 2022 earnings report on Nov. 4 revealing weakening results and sharply reduced guidance, Peloton's share price plummeted. The company's stock fell from around $86 per share before the quarterly results were announced to around $51 by the following Monday, a more than 40% drop over the weekend.
Source Fool.com
