Peloton ($PTON) is a fitness lifestyle brand that has taken America by storm during the Covid-19 pandemic. Gyms all across the US has to close their doors during the lockdown and people were wondering how they would continue to keep in shape. Peloton started as a stationary bike brand that also gave the riders a personal trainer experience in their own home. Peloton has evolved and now offers all type of guided exercises.
In December, I wanted to get into shape so I purchased the newest edition to the Peloton fleet, the Peloton Tread +. It’s a beast of a machine and took almost 3 months to arrive! I’m glad I did because I have use it quite often since it has arrived. The Peloton App has some really great quality prerecorded video to guide your workouts too. Also, the trainers are very knowledgeable and keep you entertained and motivated!
Now for the more important stuff…is Peloton stock a good buy? Peloton’s 2020 revenue reached dizzying heights at around 1.825 billion, although their net income is a depressing negative 71 million. The pandemic is slowly coming to a close with more people getting vaccinated and those people who bought a new bike or tread might go back to the gym. I do not believe that Peloton will be going anywhere in the foreseeable future, but they need to become a profitable company.
$PTON has made me a few bucks here and there on some quick call options, but long-term I do not believe their stock price of upwards of $118 a share is sustainable. Who am I to judge though, $GME is still trading for close to $166 a share! How do you feel about Peloton stock? Is it a good buy or one to avoid?