Peloton Interactive Inc. (NASDAQ:PTON): Is Peloton Worth Your Time And Investment?

Peloton Interactive Inc. (NASDAQ:PTON): Is Peloton Worth Your Time And Investment?

With its stock priced at $130.97 at the stock exchange today, Peloton Interactive Inc. is one of the high-end and high-cap stocks that most investors regard today. The company offers exercise equipment and is a part of the media/entertainment industry. Founded in 2012, the company is based in New York and has impressed investors in most might’s, especially in 2020.

Peloton Interactive Inc. stock, compared to a year before, was priced at $21.47 (as of October 2019) and today, it stands at $130.97 (October 13th, 2020). Multiple things can be said about the rise of the company’s stock in a year.

Peloton had revenue of $1.8B for FY 2020, which is an increase of 735.27% as compared to FY 2017. Though it’s net income dropped by 0.84% to -71.7 million, the company is still safe and sound, especially if we look at its demand and supply, profit margins and revenues.

Factors Contributing To Peloton Interactive Inc. (NASDAQ:PTON) Growth In 2020

While most companies struggled in 2020, Peloton did not. 2020 has indeed been a very tricky year. Most of it has been consumed by the corona pandemic which sent most companies’ stock falling especially between March to April. Peloton, however, is an exception.

From the same date to today, Peloton Interactive Inc. (NASDAQ:PTON) rose consistently. Looking at its share price a year ago till date, Peloton has risen and risen remarkably.

What has contributed to the company’s growth is the fact that it is a part of an industry whose goods and services are long lasting. They don’t wear and tear as often and therefore, are a one-time investment which most people don’t mind making. Furthermore, they are also used more frequently, which leads up to their demand. Such products are used almost anywhere and everywhere especially homes and fitness outlet, all of which add to their demand further.

When you are more in control of a product’s demand, you can put a nice price on it and Peloton benefits from that as well. If we look at Peloton’s performance, we can say that it has benefitted majorly from the rise in demand of exercise equipment and goods particularly doing the corona pandemic.

During the corona pandemic, most people were at home and became health conscious. Due to this, they resorted to exercise, health and fitness, which led to an increase in their demand of fitness equipment and machines which Peloton deals with.

Peloton has been called one of the ‘unexpected winners’ in a year because many businesses struggled to survive. The success of the company can be measured by the price of its stock which ran hard and fast this year. There is also absolutely no doubt to deny the company’s success in the coming few years as well.

Peloton Interactive Inc.: What is Ahead For Peloton

Following the corona pandemic, most people will be resorting to gyms and fitness where again Peloton’s equipment will come in. Such equipment will be in high demand, which will automatically give Peloton’s stock a motive to rise.

Peloton (PTON)’s stock price and profit margins in 2020 were mind blowing. At the moment, the company has a 52 week range of $17.70 to $110.85, which shows how much it has grown in a short span of time.

If you are wondering whether to invest in PTON stock, the answer is yes, you should. If we look at its growth and performance this year, and that exercise equipment will be in high demand in the coming few years, PTON is definitely a must buy.

Peloton is dealing with tech enhanced equipment, premium priced treadmills, stationary bicycles and software and equipment, along with accessories which add to its supply and demand. Furthermore, the company deals with remote exercise classes which are ‘anytime and anywhere’ through its app which again keeps the company in high numbers and regard.

In general and on the whole, Peloton stock is a buy and a must watch in 2020.

References

https://www.nasdaq.com/articles/get-your-portfolio-in-tip-top-shape-with-peloton-interactive-stock-2020-10-08

https://www.benzinga.com/trading-ideas/20/10/17866365/peloton-goes-parabolic

https://seekingalpha.com/article/4378644-peloton-wait-for-crash-buy-stock

 

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