Peloton's Restructuring Continues -- Is Now the Time to Buy the Stock?
Once a darling on Wall Street with its shares surging 434% in 2020 as a result of the coronavirus pandemic, Peloton Interactive (NASDAQ: PTON) has since fallen precipitously. Management overestimated demand in a reopening economy, inflating the company's cost structure, and the resulting challenges have led to big strategic changes being necessary to right the ship.
Peloton shares have fallen almost 70% year to date, and investor sentiment around the fitness stock remains very bearish. But with another major restructuring effort led by CEO Barry McCarthy, is now a good time to buy Peloton? Let's take a closer look at what investors should know.
On Aug. 12, Peloton announced more cost-cutting measures, choosing to outsource warehousing and last-mile delivery, close retail locations starting in 2023, and raise the price of the Bike+ and Tread. Shareholders shouldn't be surprised at this point, since the company has made move after move in 2022 to try and course correct. And at this point, with the stock down over 90% from its all-time high, management is pulling out all the stops to turn things around.
Source Fool.com
