Why Is Everyone Talking About Peloton Stock?
Peloton (NASDAQ: PTON) reported fiscal year 2022 fourth-quarter earnings before the markets opened on Thursday, Aug. 25. The interactive exercise equipment company disappointed investors, and the stock plunged 18% on the day of the announcement.
Peloton overinvested in growth following the boom in sales during the lockdown phase of the pandemic. Sales started falling almost as soon as gyms were allowed to reopen. The lack of foresight has burdened the company with more inventory and manufacturing capacity than it can handle with normal business operations.
In its most recent quarter, which ended on June 30, Peloton reported sales of $679 million. That decreased 30% from the $964 million it reported in the same quarter last year. It's a dramatic turnaround for a company that was growing sales at over 100% for several consecutive years, even before the outbreak of COVID-19.
Source Fool.com
