Has the Pandemic Pushed Peloton's Value Too Far?

Coronavirus countermeasures have shut down gyms and entertainment venues, and people across the world have turned to online, virtual classes as a way to stay fit and cope with the added stress. As a result, the hugely popular home workout brand Peloton (NASDAQ: PTON) experienced a jump in interest, which has translated to a large rise in quarterly revenues. However, since its mid-March lows this year, Peloton's stock price has risen more than 260%. Do the underlying numbers justify such a leap?

Image source: Peloton

Peloton has posted net losses since its IPO a couple years ago, despite its stellar growth. However, given management's heavy growth-oriented strategy, those losses may not be as dire as they look.

Source Fool.com