Here's Why Peloton Stock Plunged Today
Shares of connected-fitness company Peloton Interactive (NASDAQ: PTON) plunged on Thursday following the release of its latest quarterly financial results. As of 11:30 a.m. ET, Peloton stock was down nearly 15%.
Today, Peloton reported financial results for its fiscal third quarter of 2023, which ended on March 31. Starting with the top line, the company generated Q3 revenue of $749 million, down 22% year over year and down 6% quarter over quarter. While revenue was down, it was better than what analysts had projected.
Subscription revenue drove Peloton's top-line surprise. The company's revenue is comprised of one-time hardware sales and recurring monthly subscription revenue. In Q3, hardware revenue was down a whopping 45% year over year to $324 million. By comparison, subscription revenue was up 15% to almost $425 million, thanks to growing its connected-fitness subscriber base 5% to 3.1 million.
Source Fool.com
Peloton Interactive Inc. Stock
Our community is currently high on Peloton Interactive Inc. with 10 Buy predictions and 3 Sell predictions.
Based on the current price of 2.75 € the target price of 7 € shows a potential of 154.31% for Peloton Interactive Inc. which would more than double the current price.
