PTON

Peloton Interactive, Inc.

10.79
USD
-2.00%
10.79
USD
-2.00%
9.29 129.70
52 weeks
52 weeks

Mkt Cap 3.27B

Shares Out 303.00M

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Why Peloton Stock Dropped 10% Today

On a day that the stock market is up over 1% overall, we have seen shares of Peloton Interactive (NASDAQ: PTON) drop as much as 10%. Shares clawed back some of those losses in afternoon trading but are still down 6.2% as of 2:30 p.m. ET. The market continues to try to figure out what to do with a potential U.S. recession, rising interest rates, and a shift away from pandemic stocks. Today's loudest voice was the Financial Times, which highlighted that Peloton actually has an inventory problem on its hands now that demand for bikes and treadmills has fallen. In the first quarter of 2021, Peloton had just 70 days of inventory on hand as demand for bikes skyrocketed and the company couldn't keep up. But at the end of the first quarter of 2022, the company has 225 days of inventory on hand. This is notable, because late last week there were multiple reports that the company is looking to raise $750 million in debt to try to survive the current drop in demand, which would in turn make the stock even riskier because of the debt hanging over the business. Peloton is in a tough position until it can match its supply and demand. During the pandemic, the company built up capacity in hopes that demand and revenue would keep growing long-term, but that didn't happen as people went back to work and started cutting back on some spending. Now the company is just hoping to survive long enough to fight another day, which isn't a promising sign for investors. 10 stocks we like better than Peloton Interactive When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Peloton Interactive wasn't one of them! That's right -- they think these 10 stocks are even better buys. *Stock Advisor returns as of April 27, 2022 Travis Hoium has positions in Peloton Interactive. The Motley Fool has positions in and recommends Peloton Interactive. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

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