Peloton's Pandemic Bonanza Is Coming to an End

Few companies benefited more from the pandemic than connected fitness phenom Peloton (NASDAQ: PTON). Gyms and fitness classes were off the menu completely at the start of the pandemic, and restrictions have persisted in most places until recently. Peloton has seen sales of its stationary bikes soar over the past year as consumers with cash to burn turned to the pricey equipment to get their fitness fix.

In Peloton's most recent quarter, the company reported revenue of $1.26 billion, up 141% from the prior-year period. About 80% of revenue came from the sale of equipment, with the rest coming from Peloton's subscription offerings.

While some people will likely stick with home workouts after the pandemic is over, recent research from Jefferies suggests that gyms and fitness classes are making a comeback now that most Americans are at least partially vaccinated. That could spell trouble for Peloton as demand for its products fades.

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Source Fool.com