Up 44% in 2023, Is the Worst Over for Peloton Stock?
Peloton (NASDAQ: PTON) was an investor favorite during the COVID-19 stock market bubble. Now, with the pandemic in the rearview mirror, an abrupt exit from founder/CEO John Foley, and the air coming out of the bubble stocks, Peloton shares have nosedived. The stock is down 60% over the past year and significantly more from its peak in early 2021 as the company started to hemorrhage money and lose demand for its at-home fitness products.
But this year, Peloton shares have started to stage a comeback, up a whopping 44% so far in January. Does that mean the worst is over for Peloton shareholders? Let's investigate
When John Foley left Peloton, a renowned executive from Netflix and Spotify named Barry McCarthy took over the helm as CEO. And Foley left him quite a mess to clean up. Peloton drastically miscalculated consumer demand for its exercise equipment in 2022, building up huge amounts of inventory and planning a new manufacturing hub called the Peloton Output Park in Ohio. Turns out that way fewer people wanted to buy $2,000 exercise bikes when they were able to leave their homes to exercise, leading to a huge decline in customer orders throughout late 2021 and early 2022.
Source Fool.com
