Peloton Stock Is the Cheapest It Has Ever Been, but You Should Remain Cautious

Peloton Interactive (NASDAQ: PTON) is a popular brand in the fitness industry that achieved cult status at the height of the pandemic thanks to its digitally enabled at-home exercise equipment. When gyms were closed and we lived under social restrictions, Peloton was a saving grace for fitness enthusiasts.

But times have changed. Demand for Peloton's products stalled when pandemic restrictions lifted, which led the company's revenue to shrink. It prompted drastic cost cuts across the entire business under the leadership of a new CEO, Barry McCarthy, who joined in February 2022 to steady the ship.

While McCarthy has been successful in many respects, Peloton stock remains 97% below its all-time high and continues to sink. By one important metric, it's now trading at the cheapest valuation since the company went public in 2020. But here's why investors shouldn't rush to buy it.

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Source Fool.com