This Fitness Stock Just Had a Banner Month. Does That Make It a Buy?

Since peaking in early 2021, share prices of connected-fitness company Peloton Interactive (NASDAQ: PTON) have plummeted a gut-wrenching 94%. To any investor who's held since the top, this is quite literally one of the worst declines you can possibly experience as an investor.

These wretched returns suggest Peloton is a business in total decline. And yes, the company does have important challenges to overcome. However, you'd probably never guess it just had a record month. And yet that's exactly what just happened for one part of Peloton's business.

According to estimates from third-party analytics company AppFigures, revenue for Peloton's app hit an all-time high in May. Peloton has multiple parts to its business. It sells exercise hardware. But it also sells an ongoing subscription service to unlock content and features for the hardware. If you're a connected-fitness subscriber (meaning you have hardware and pay for the subscription) you get automatic access to Peloton's exercise app. But you can pay for a subscription to the app without owning hardware.

Source Fool.com