PTON - 3 Stocks I'm Avoiding in 2024
2023-12-21 07:20:00 ET
Picking winners is important in investing, but avoiding losers is equally so. Connected-fitness company Peloton (NASDAQ: PTON) , PC and printing giant HP Inc. (NYSE: HPQ) , and online-car marketplace Carvana (NYSE: CVNA) are three stocks that I'll be staying far away from in 2024 and beyond. Here's why.
Connected-fitness company Peloton has made some positive changes since its turnaround efforts began under CEO Barry McCarthy. Most importantly, it has shifted its focus from its pricey fitness equipment to its app. There are now multiple subscription tiers that don't require Peloton hardware, significantly broadening the brand's appeal beyond those willing to buy expensive home-exercise equipment.
Unfortunately, Peloton's turnaround isn't showing much progress. Hardware sales are still sinking, down 12% year over year in the most recent quarter. More concerning is that subscription revenue rose by just 1%. The total number of members dropped 4% year over year, the number of paid-app subscriptions tumbled 13%, and the paid-app monthly churn was 6.3%. Peloton is losing subscribers faster than it's gaining new ones.
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3 Stocks I'm Avoiding in 2024