PTON-Peloton temporary dip creates buy opportunity

Peleton has reported a 128% increase in Revenue, 134% increase in Connected Fitness Subscriptions, and 472% increase in Digital Subscriptions in its Q2 earnings. While these are great numbers, shares dropped 9% on Friday. This dip is mostly due to Peloton's issues with meeting demand. There is a high demand for the company's products, especially in the US market which the company is struggling to keep up with due to difficulties with overseas shipping. To combat this issue, the company will be investing approximately $100m in air freight and ocean freight in the next 6 months. On top of this, the company is working to acquire Precor for $420m. This acquisition, though not final, will allow for domestic manufacturing in the United States, which will relieve some of the challenges with meeting demand. The company has almost 4.4 million members and as they overcome their shipping and manufactiriong challenges, that number will continue to increase at a high rate. So it seems as though the dip in shares is temporary and poses and opportunity to buy into one of the strongest performing companies in the connected fitness market. 

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aputcha2

Feb 7, 2021

-30.52%

Change % Since Posting

148.90

Price When Posted

-45.45

Change Since Posting

PTON

Peloton Interactive Inc - Class A

103.45

-1.47
-1.40%
Current Price

PTON-Peloton temporary dip creates buy opportunity

bullish

Peleton has reported a 128% increase in Revenue, 134% increase in Connected Fitness Subscriptions, and 472% increase in Digital Subscriptions in its Q2 earnings. While these are great numbers, shares dropped 9% on Friday. This dip is mostly due to Peloton's issues with meeting demand. There is a high demand for the company's products, especially in the US market which the company is struggling to keep up with due to difficulties with overseas shipping. To combat this issue, the company will be investing approximately $100m in air freight and ocean freight in the next 6 months. On top of this, the company is working to acquire Precor for $420m. This acquisition, though not final, will allow for domestic manufacturing in the United States, which will relieve some of the challenges with meeting demand. The company has almost 4.4 million members and as they overcome their shipping and manufactiriong challenges, that number will continue to increase at a high rate. So it seems as though the dip in shares is temporary and poses and opportunity to buy into one of the strongest performing companies in the connected fitness market. 

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read-time
1 min

163.13

Target Price

8/ 10

Confidence

6-12 Months

Timeframe
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Earnings Release
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News
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SEC Filing
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