Why Is Everyone Talking About Peloton Stock?
Most consumers have probably heard of the fitness equipment brand Peloton Interactive (NASDAQ: PTON). Its television commercials were already airing regularly before the coronavirus pandemic, but the crisis has prompted a surge in purchases of the company's at-home exercise machines. People are enthusiastic about their new "toys," particularly when lockdowns provide them with lots of free time.
Many investors may not realize, however, that Peloton has also recently become a publicly traded outfit. The company IPO'd in September of last year, and Peloton stock has since more than doubled its IPO price. The market seems to think the new normal in a post-COVID world is steering clear of gyms and using fitness equipment at home instead. A recent Freeletics survey suggested that around two-thirds of U.S. consumers don't think they need a gym anymore to remain fit, and 60% of them plan on canceling their gym memberships soon. For many people, a home gym is just as effective. Besides, Peloton's equipment brings a virtual, interactive gym experience to the home.
It's just too bad copycats are already taking aim at the company's idea.
Source Fool.com