Is Peloton a Smart Buy in December?
Peloton Interactive (NASDAQ: PTON) has definitely gotten its shareholders' portfolios seriously out of shape as the stock has fallen precipitously over the past couple of years. A flawed outlook by the previous management team -- namely, expecting the pandemic-fueled demand surge to continue in a post-social-distancing world -- has left the business fighting to survive financially.
Nonetheless, shareholders might be eyeing the company in hopes that the new leadership team's turnaround efforts will be successful. As 2023 approaches, should investors consider buying Peloton stock?
With shares down by 65% year to date as of this writing, Peloton now sports a market capitalization of just $4 billion. And its price-to-sales ratio of 1.2 is far below the peak of about 20 it hit in December 2020. This incredible fall in valuation might appear attractive at first glance, but investors need to take a closer look at the worsening fundamentals of the business.
Source Fool.com
