The problem with stock trading is that, it is generally hard to short stocks. Not many brokers have certain stocks to short. And naked shorting has been pushed out. Option market has its own problem due to liquidity and other technical issues.
When a company is doing very badly, simply change the management and CEO. Then how high will the stock go up? no idea. it depends on the new CEO.
When something is close to dead, any news is good news. Investors believe in some dark magic to fix the dying horse.
The fact that rumors are out tells enough that its is a dying pump play. A real play would just announce take over talks. ..it may get bought out, but probably around $5-10 per share at most...pre bk
PTON will be bought. But no one wants to rush in and pay the premium price the market demands. It is also hard to negotiate with the guy who holds the super shares to control its fate. I'd like to see PTON continues to drop. Then pressure is on the former CEO to give up control of the company. He won't get the premium price he desires. I do not think PTON is worth $35 now. Not sure how much it is worth. But the longer they wait, the less value the company is worth. Sales people and employees can flee. Job market is hot. But PTON is cold that they let go of 2,500 employees. That is really bad. Do not know how market considers firing employee is a good thing. Traders are nuts and dumb.