As one of the companies that benefited greatly from the pandemic, fitness company Peloton Interactive (NASDAQ: PTON) has earned the "COVID stock" label from investors. After the company's most recent quarter showed a slow down in its business, investors have been selling off the stock, pushing it to near 52-week lows.
Despite the turn in sentiment against the stock, there are three significant reasons to expect Peloton to continue growing for years into the future.
Peloton's fiscal 2021 fourth-quarter earnings revealed that its member base did fewer total workouts than the previous quarter, and workouts per subscription member were also down; this indicates that engagement from Peloton's customers decreased. However, context is essential; the quarter represented the summer months when people are more likely to go outside, as well as the pandemic pushing people away from gyms.
Source Fool.com