Why Peloton Interactive Stock Is Tumbling Today
Shares of Peloton Interactive (NASDAQ: PTON) were falling 7.4% in morning trading on Monday after UBS analysts Arpine Kocharyan and Robin Farley lowered the firm's price target on the connected fitness company from $65 per share to $30 while maintaining its sell rating on the stock.
The analysts say that after looking at the adoption levels for Peloton's digital app on the iOS platform, the 70-basis-point decline seen since October suggests its subscription numbers will be softer than the already weak Wall Street consensus. As a result, Peloton is not likely to be profitable in the second half of the year, which may cause investors to flee the stock.
Image source: Peloton Interactive.
Source Fool.com