2024-05-12 08:33:06 ET
Summary
- Peloton stock was on a tear last week with PE rumors boosting investor confidence in the struggling exercise equipment manufacturer.
- This is not the first time that deal rumors have helped Peloton stock.
- In this analysis, I draw investor attention to a few reports published in 2022 that boosted PTON stock price before the reality set in.
- After digesting PE rumors and revisiting my thesis for Peloton, I still find the company uninvestable.
I have been neutral/bearish on Peloton Interactive, Inc. ( PTON ) for as long as I can remember. Even during the pandemic boom, I failed to find Peloton an attractive bet given my belief the company was, at the time, not well-prepared for what the post-pandemic world had in store for at-home fitness companies. Last October, after digesting Peloton's new growth initiatives such as the introduction of lower-priced bikes and a new rent-to-buy program, I suggested investors sell and forget Peloton . Even after a spectacular run in the last few trading sessions on the back of rumors of a private equity deal, Peloton stock is still trading below the price at publication of my previous analysis....
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Peloton: PE Rumors Need To Be Ignored