Peloton Raises $750 Million in Debt -- Should Investors Worry?

Not long ago, Peloton Interactive (NASDAQ: PTON) was a popular darling on Wall Street, but its shares have come crashing down from the high they set in December 2020. The innovative maker of connected at-home fitness equipment has seen its stock crater by 92% from that peak, and its market cap -- which once approached $50 billion -- stands at just $4.7 billion as of this writing.

A combination of weakening demand and over-investment in manufacturing and inventory has left this consumer discretionary business in a tough financial situation. So to shore up its balance sheet, management just raised $750 million in debt. Navigating what could be a difficult few quarters so that it can ultimately get on the road back to profitability is the company's primary goal right now.

But should this debt sale be viewed as a sign of trouble for Peloton?

Source Fool.com