Peloton's Deal With Lululemon Still Doesn't Make the Stock a Buy

What a difference a year can make.

Almost exactly one year ago, Lululemon Athletica (NASDAQ: LULU) and Peloton Interactive (NASDAQ: PTON) were settling a lawsuit in which the yoga apparel maker had accused the exercise-bike specialist of patent infringement over its Peloton-branded line of women's apparel.

Late Wednesday, the two companies announced a new five-year strategic global partnership. Shares of Peloton surged as much as 35% in after-hours trading on the news, then opened Thursday up around 10%. Lululemon stock is up around 1%.

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Source Fool.com