PTON Stock Price: Peloton declines to close out volatile week after hitting all-time highs

NASDAQ:PTON continues to hit its stride as the at-home fitness company rolled over Wall Street estimates at its recent earnings call. Peloton crushed it reporting earnings of $0.27 per share compared to expected earnings of $0.10 per share. Revenues topped $607 million compared to expectations of $582 million and the company reported profitability for the first time in its existence. All signs are pointing to a monster fiscal year in 2021, especially as the current coronavirus quarantine is looking like it will extend into the new year. 

The recent dip is not surprising given the recent tech selloff that the NASDAQ has been experiencing as investors have started to take profits on some of the year’s biggest gainers thus far. Peloton’s correction has followed in the footsteps of DocuSign (NASDAQ:DOCU) and CrowdStrike (NASDAQ:CRWD) amongst others, which fell after reporting better than expected earnings. The addition of some more affordable products including a lower cost stationary bike and treadmill will open up Peloton to an entirely new group of customers and further cement itself as the fitness industry disruptor that investors need to watch.

PTON stock news

Analysts at UBS withdrew their previous downgrade rating and increased the price target from $58 to $85 per share which puts the stock’s current valuation at UBS’ estimates. The possibility of a further increase in market share, mainly through selling used Peloton products and even renting them out, could open up revenue streams that were not even thought to be available before this quarter. Peloton has grown quickly and so has its stock – and if management can pull off all of these new parts to its brand, the company should be in line to enjoy another profitable year in 2021, and so will its investors.