Still a long way to run with Peloton

The strong tailwind which has been behind the impressive performance of Peloton this quarter is expected to continue into Q1 2021. As demand continues to surge, orders would be carried over into the next quarter, which would reflect on the income. The increasing awareness of healthy living, which has been more pronounced during this pandemic is expected to drive demand and sakes for Peloton products as people would pay more attention to their physical health. The company, however, is not resting on its heels. Peloton is investing aggressively in new product development, scaling its manufacturing capabilities to meet with growing demand and plans to introduce new software features. Peloton is also slashing prices for its bike, from $2,245 to $1,895, which would not only make their products more accessible but also increase their subscriber base. This implies that the company is not only focused on sales but also is expanding its services catalogue, which would be a major stream of income in the future. We have seen the effects of a service-focused strategy in the reduction of the operating expenses this quarter. As such, if sales dwindle due to economic reasons, the company would still be able to rake in revenue from its services. A veritable source of competitive advantage who h the company is expected to exploit is developing accessories that go with fitness equipment. This would position Peloton as an ecosystem of products and services rather than just a singular hardware company. All these indicators validate the bullish position taken for this stock and make a strong case for a long term hold. It is by all indications, a stock that you should have in your portfolio.

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AngelaYan

Sep 13, 2020

23.10%

Change % Since Posting

84.04

Price When Posted

19.41

Change Since Posting

PTON

Peloton Interactive Inc - Class A

103.45

-1.47
-1.40%
Current Price

Still a long way to run with Peloton

bullish
The strong tailwind which has been behind the impressive performance of Peloton this quarter is expected to continue into Q1 2021. As demand continues to surge, orders would be carried over into the next quarter, which would reflect on the income. The increasing awareness of healthy living, which has been more pronounced during this pandemic is expected to drive demand and sakes for Peloton products as people would pay more attention to their physical health. The company, however, is not resting on its heels. Peloton is investing aggressively in new product development, scaling its manufacturing capabilities to meet with growing demand and plans to introduce new software features. Peloton is also slashing prices for its bike, from $2,245 to $1,895, which would not only make their products more accessible but also increase their subscriber base. This implies that the company is not only focused on sales but also is expanding its services catalogue, which would be a major stream of income in the future. We have seen the effects of a service-focused strategy in the reduction of the operating expenses this quarter. As such, if sales dwindle due to economic reasons, the company would still be able to rake in revenue from its services. A veritable source of competitive advantage who h the company is expected to exploit is developing accessories that go with fitness equipment. This would position Peloton as an ecosystem of products and services rather than just a singular hardware company. All these indicators validate the bullish position taken for this stock and make a strong case for a long term hold. It is by all indications, a stock that you should have in your portfolio.
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read-time
1 min

155.00

Target Price

8/ 10

Confidence

1-2 Weeks

Timeframe
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Earnings Release
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