Peloton (NASDAQ: PTON) jumped 6% after the stock received a boost from an asset manager and hedge fund boss who dismissed the treadmill recall. Octahedron Capital Hedge Fund Manager Ram Parameswaran said that in the next few years, Peloton, whose subscription model is similar to that of Netflix, could rise to $300. Also, Karen Firestone, Aureus Asset Management CEO, said that the company would overcome the recall fiasco, and it is priced to buy.
Since hitting a record high in January, the stock has lost 40% following a recall of its treadmills after injuries to people and the death of a child. Parameswaran indicated that the recall concerns have been overblown, and the recall affects only 5% of treadmills. Also, the company will recover any lost sales in the next three months.
Peloton is among the fast-growing companies, and considering some growing companies have recovered from difficult situations before, the company will also emerge stronger. Most importantly, its earnings will continue growing, and in the coming months, the stock is worth watching.
Finance and Entertainment Reporter
Richard is a bottle of wine – the older the sweeter. He has already found the sweetest hobby in writing entertainment and finance news for Own Snap. Readers get the updated posts regularly from him searching for real-time news.