Why investors should avoid this once-promising growth stock



Many stocks that were hot buys during the pandemic have cooled significantly. Interactive Platoon
(NASDAQ:PTON) is no exception. The company’s high-priced bikes seemed like attractive options for
working amid home orders. But now, with the economy reopening, people can go
gyms and inflation making company bikes even more unaffordable, it’s no surprise
that Peloton has fallen out of favor with investors.

Its shares have fallen 84% in the past 12 months. And the company’s latest results
the results only looked like an even worse purchase in the future.

Earlier this month, Peloton released its third quarter results. Sales of $964.3 million were lower than
analysts’ expectations of $972.9 million. It was also far less than the $1.26 billion reported by Peloton.
in the period of the previous year. And the end result was disastrous as the company’s per share loss of $2.27 was
more than double the $0.83 loss Wall Street had anticipated for the third quarter.

Peloton has a large inventory, which suggests that its products are still not moving quickly. More,
the company seeks to increase its subscription prices, which will make its memberships less attractive,
and likely contributing to an already struggling demand for bikes.

Even despite remarkable sales growth a year ago, Peloton was not a profitable business. Now face
significant headwinds will make it even harder for the company to hope
reach the break-even point. And that’s why as bad as things are for Peloton, they could still have plenty.
worse for the company and its actions