PTON Stock Price Forecast: Peloton Interactive hits the brakes as it deals with supply woes

  • NASDAQ:PTON fell by 4.06% on Friday lagging the broader markets which finished the week in the green.
  • Peloton invests $100 million into its shipping and logistics to try and meet the demand for its products.
  • Peloton adds some new partnerships to its lineup, including a popular music brand.

NASDAQ:PTON has been a polarizing battleground stock between those who believe in the company long term and those who believe it is merely a company that thrived during the pandemic. On Friday, Peloton continued to trend lower as the stock fell by 4.06% to close the last trading session of the week at $118.60. Shares are trading back over the 50-day moving average, but still lag the 200-day moving average as Peloton was stuck in the growth sector correction that hit the markets in February and March. Peloton still finds itself over 30% off of its all-time high price of $171.09, and investors must be wondering when it will see those price levels again.

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Part of the negative sentiment surrounding Peloton was the fact that the company was having a difficult time keeping up with the demand of new orders. Customers were forced to wait for longer periods of time, and Peloton saw order cancellations beginning to rise. A shortage of shipping containers, along with a surge in demand for its machines, saw Peloton forced to invest $100 million in express shipping fees and infrastructure, to allow customers to receive their machines in a timely manner.

PTON Price news

Peloton also signed some partnerships recently, adding the popular music service Verzuz to its playlists as well as completing the deal to buy the home fitness machine brand Precor. The acquisition of Precor gives Peloton a significant U.S. manufacturing presence, as well as providing a significant boost to its domestic R&D divisions.

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