Peloton Interactive (NASDAQ: PTON) was one of the market's favorite growth stocks during the pandemic. The maker of connected exercise bikes and treadmills flourished as brick-and-mortar gyms closed down, and that growth spurt coincided with the buying frenzy in growth and meme stocks throughout 2020 and 2021.

As a result, Peloton's stock hit a record high of $167.42 on Jan. 13, 2021. That equaled a 477% gain from its IPO price of $29 on Sept. 29, 2019. At its peak, Peloton's enterprise value reached $47.2 billion, or 12 times the revenue it would generate in fiscal 2021 (which ended in June 2021). Today, it trades at about $3 with an enterprise value of $2.7 billion, or just 1 times its projected revenue for fiscal 2024.

Image source: Peloton.

Continue reading

Source Fool.com