Is Peloton Stock in a Death Spiral?

2022 has started out as a tough year for investors. This is especially true for shareholders of Peloton (NASDAQ: PTON), which is down over 70% in the last 12 months. The company, which was a stock market favorite during the beginning of the pandemic, has lost its footing over the past six months and now faces a massive inventory problem. What's worse, many investors have lost confidence in the company, hurting its ability to raise money through common stock offerings.

With all these factors coming together, Peloton has started burning cash rapidly, leading to fears that it could run out of money if the company can't rebound within one to two years. Does this mean Peloton stock is in a death spiral? Let's find out.

Image source: Getty Images.

Source Fool.com