The coronavirus pandemic and the demand for home fitness equipment had proven to be a major boost for Peloton Interactive Inc (NASDAQ:PTON) and its stock. The stock performed impressively owing to the higher demand for Peloton products and hit a high of $171.09 earlier on in the year.
Now, the company faces two challenges. One of those is the possibility of gradual dialing down of demand for its products after the relaxation of lockdown and the other is the recent recall of Tread+ treadmills.
The product recall resulted in a selloff in the stock. Additionally, despite the slowdown in sales in recent times, it should be noted that it might not be the end of the road for Peloton. In the quarter that ended on March 31, as many as 2.08 owners of Peloton products signed up to its service. At this point, the stock is cheap and although the lockdown-induced growth may not be seen again, Peloton might still continue to keep growing at a fair clip.
Writing for business and finance publishers has become his passion over the last decades after he completed a master’s degree in Financial Management. Sharing some opinions and forecasts to thousands of readers is a routine job for him but he never promises to invest in one stock.