Why Peloton's Sell-Off May Not Be Over

Investors knew the near term was going to be challenging for Peloton Interactive (NASDAQ: PTON), but the latest earnings results and forward guidance leave a lot of uncertainty about Peloton's competitive position.

While subscriptions continued to grow at a brisk pace, sales of bike hardware came to a screeching halt last quarter, causing management to lower Peloton's full-year guidance.

As a result, the stock got crushed last week. Still, the shares trade at a high valuation relative to the company's expected growth rate for fiscal 2022. Here's why Peloton is a falling knife I wouldn't touch right now.

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Source Fool.com