Why Peloton's Shares Jumped 31.5% This Week
Shares of (NASDAQ: PTON) finally had a good week this week as reports swirled the company could be a private equity takeover target. According to data provided by S&P Global Market Intelligence, shares jumped as much as 31.5% this week and are up 23% for the week as of 2:30 p.m. ET on Friday afternoon.
Last week, Peloton reported what can only be called a disappointing earnings report. The core-equipment and premium-subscription segment is doing well, but the app that was supposed to allow Peloton to scale is struggling with high churn and low sign-ups.
But that was forgotten this week when reports emerged that the company has gotten interest from private equity firms. This may make sense given the extremely low churn rate of about 1% for the core-content subscription, but management has been pouring money into expanding the app, and that's why the company hasn't yet been profitable.
Source Fool.com
Peloton Interactive Inc. Stock
Based on 9 Buy predictions and 9 Sell predictions the sentiment towards Peloton Interactive Inc. is rather balanced.
As a result the target price of 5 € shows a very positive potential of 57.33% compared to the current price of 3.18 € for Peloton Interactive Inc..
