PTON - These 2 Former Growth Stocks Are in Serious Trouble
2023-05-03 08:35:00 ET
Comebacks can be lucrative. Betting on a stock that has fallen on tough times can pay off handsomely if the underlying company successfully turns things around. But as promising as turnaround plans often sound, few succeed.
Shares of Carvana (NYSE: CVNA) and Peloton (NASDAQ: PTON) are each down more than 90% from their pandemic-era peaks. While it may seem tempting to bet on the used car retailer or the connected fitness company, successful turnarounds look unlikely in both cases.
Online used car seller Carvana grew like a weed during the pandemic. Sky-high demand and prices for used cars drove up revenue, and the company came close to turning a real profit. The company sold just over 425k retail units in 2021, up from 244k in 2020, and revenue more than doubled.
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These 2 Former Growth Stocks Are in Serious Trouble