NLS - Is Peloton Stock Recession-Proof?
We're officially in a recession, according to the National Bureau of Economic Research. Its Business Cycle Dating Committee determined the economy stopped expanding in February. Until then, it was the longest period of continuous economic growth at just over a decade.
Not all companies are equally built to maintain, grow, or thrive during a recession. So how about fitness company Peloton (NASDAQ: PTON)? It was founded in 2012 and wasn't around for the last recession. Therefore, investors can't simply look at past results to understand how recession-proof its business is.
That said, there's reason to believe Peloton can grow in this current recession. But it's fair to question its durability if things get worse. Here's why.