Peloton Stock Is Down 78% Over the Past Year. Is the Only Way to Go Up?
Peloton Interactive (NASDAQ: PTON) has been quite the story, not only this year, but since it went public in 2019. Its sales skyrocketed when the pandemic started, but now that more people are returning to their prior fitness habits, the company can't keep up with its earlier pace. Was it a poor decision to scale up its business as rapidly as it tried to?
Certainly, it now faces headwinds as demand for its pricey equipment wanes. The stock price has fallen by 78% in the past 12 months, almost entirely erasing the gains it made since the U.S. first began its COVID-necessitated lockdowns. Will it ever go back to those levels?
When the pandemic began, Peloton experienced growth at a rate many companies can only dream of. Its growth was slowing prior to the health crisis, but starting when lockdowns took effect, it experienced four consecutive quarters of triple-digit-percentage growth year over year.
Source Fool.com
