I got out of this yesterday based on the price action which didn't look good. Some folks "took a ride" on this stock today.
Based on nothing intelligent in my head, I would say the stock will bounce much higher, once Influenza season hits along with the holidays. Q4 sales will be grand.
PTON was flying high after ZM earnings release, hoping for a similar spike in covid related sales, and a similar boost to it's stock price. I had sold a few ATM puts in PTON around 85. Bought them back when ZM and other tech shares crashed. PTON didn't fall much that day.
Earnings won't be as stellar 12 months out as the at home trades start to fade. This company probably did 3 to 4 years worth of earnings in 6 months!!! Every bit of their growth was pulled ahead.
There is good explanation of the fall in Peloton stock at The Arora Report Blog. The behavior of this stock is not the same as other tech stocks last month. May be more selling is about to come.
its a freaking exercise bike. This market is sooo frothed up and sooo brand hypothesized. I know people are at home with lockdown but you have a selection of many bikes out there. Plus, some people prefer Stairmasters, some prefer the many walking treadmills. Can you wear your $129 lulumon pants on the $2,500 Peloton? Its all freaking ridiculous. How can a exercise bike company that sells each bike for $2000 not be profitable??? and the shares are trading at nine times trailing revenue??? I remember when Soul Cycle was going to IPO and we were all drooling over the short prospects "not that very long ago". (that was before the magic always up bull market). All of the soul cycle founders were named Karen. One of the Karens (Julie Rice) went on to center stage at WeWork..lol. That takes us full circle back to Softbank (six degrees of separation). You cant make this stuff up in guys. You know we are at a market top when Buffet buys a company called "Snow Flake". I got a feeling we will find some amazing short opportunities soon to come. Stay thirsty my friends.