Peloton Underestimates Reopening Impact: Stock Gets Slammed After Q1 Earnings
Peloton Interactive (NASDAQ: PTON) was one of the prime beneficiaries of pandemic lockdowns. Folks stuck at home, with their gyms closed, looked for ways to maintain healthy exercise habits and Peloton's in-home exercise equipment offered a solution to a temporary problem.
As billions of doses of a vaccine against COVID-19 have been administered, economies have reopened and alternatives to in-home exercise equipment were again available. Peloton management knew this could happen and was ready for some level of slowdown.
But the company's recently released earnings report strongly suggests the magnitude of the reversal in the trend caught management off-guard.
Source Fool.com
