Why I Still Won't Touch Peloton Stock
The stock price for Peloton Interactive (NASDAQ: PTON) is down more than 70% from its all-time high following a disastrous earnings report last week.
Revenue in its fiscal 2022 first quarter grew just 6% to $805.2 million as hardware sales suddenly declined, a sign the company is struggling to attract new customers at the same pace even as it lowered prices for its bikes and treadmills. It also slashed its guidance for the full year to between $4.4 billion and $4.8 billion from $5.4 billion.
Even worse, Peloton was clearly spending money at an unsustainable rate with sales and marketing up 149% in the quarter against just single-digit revenue growth. As a result, the company announced a hiring freeze the day after the earnings report, showing a company in disarray with its full-year guidance well below the analyst consensus.
Source Fool.com
