Peloton's Stock Is Still Priced for Perfection
Peloton Interactive's (NASDAQ: PTON) stock price has nearly doubled since it completed its initial public offering at $29 a share just nine months ago. Investors have reacted positively to the company's continued strength in selling its exercise bikes, treadmills, and signing up subscribers to its fitness classes. In its fiscal third quarter (which ended March 31), Peloton grew its connected fitness subscribers by 94% year over year from 457,100 to 886,100. And revenue grew 66% year over year to $524.6 million.
While the coronavirus pandemic was a tailwind for the company as stay-at-home orders forced gyms to close their doors and more people pursued exercise in their idle time, Peloton's revenue growth in fiscal Q3 was only the latest in a string of impressive results on that score.
That is certainly good news. However, this stock has risen so much and so rapidly without the company producing a GAAP profit, which makes me wary about investing in it.
Source Fool.com
