Latest news with #PTON
Yahoo
a day ago
- Business
- Yahoo
Peloton Interactive (PTON) Rallies to New High on Earnings Beat, Higher Price Targets
We recently published . Peloton Interactive, Inc. (NASDAQ:PTON) is one of the best-performing stocks on Friday. Peloton Interactive rallied for a second day on Friday, jumping 10.27 percent to close at $7.84 apiece, as investors cheered its earnings beat for the full fiscal year of 2025, alongside higher price targets from investment firms. In an updated report, Peloton Interactive, Inc. (NASDAQ:PTON) said it exceeded its full-year guidance on all key metrics, including revenue expectations of $2.455 billion to $2.470 billion, having posted actual revenues of $2.49 billion. The figure, however, was 7.8 percent lower than the $2.7 billion registered in the full fiscal year of 2024. Net loss also narrowed by 78 percent to $118.9 million from $551.9 million year-on-year. Copyright: 123mn / 123RF Stock Photo In the fourth quarter period, revenues decreased by 5.7 percent to $606.9 million from $643.6 million year-on-year, while a $21.6 million net income reversed a $30.5 million net loss in the same comparable period. Following the results, Goldman Sachs gave Peloton Interactive, Inc. (NASDAQ:PTON) increased its price target to $11.5 from $7 prior, while Deutsche Bank raised its target to $8.20 from $7.80 with a 'buy' recommendation. UBS maintained its price at $11 with a 'buy' recommendation, while Bernstein reaffirmed its price target of $7.5 with a 'market perform' rating. While we acknowledge the potential of PTON as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Goldman Sachs upgrades Peloton on turnaround potential
-- Goldman Sachs upgraded Peloton (NASDAQ:PTON) to Buy from Neutral and raised its price target to $11.50 from $7, saying the company's new strategy could put it on a path to revenue and cash flow growth over the next 12 to 18 months. The brokerage cited several shifts in Peloton's business, including a move beyond fitness into broader wellness offerings, and an effort to personalize the user experience through potential coaching features. While specifics are limited, Goldman said the focus on new product experiences and distribution—such as micro-stores, travel partnerships, and expansion into education and international markets—could help widen Peloton's reach. The firm also noted improvements in hardware growth and margins, better monetization of the subscriber base, and tighter control of operating costs in the company's fourth-quarter results. Management forecast over $200 million in free cash flow for fiscal 2026, which Goldman said points to ongoing progress in stabilizing the business. Looking ahead, Goldman said it sees scope for Peloton to return to revenue growth by mid-FY26, with potential for that to accelerate. It also flagged long-term benefits from expanding into wellness trends and offering app-based services to users without Peloton hardware. The upgrade reflects a view that new leadership and clearer execution on the updated strategy could restore investor confidence and drive a positive revision cycle in earnings and margins. Related articles Goldman Sachs upgrades Peloton on turnaround potential If Powell goes, does Fed trust go with him? 7 Undervalued Stocks on the Rise With 50%+ Upside Potential Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Peloton Is Cutting Jobs. How Should You Play Beaten-Down PTON Stock Here?
Peloton (PTON) shares ended about flat on Thursday even though the connected fitness company reported a surprise profit for its Q4 and announced plans of lowering its headcount by another 6%. According to the exercise equipment manufacturer, the latest round of layoffs will reduce run-rate expenses by another $50 million in its fiscal 2026, which started in July. More News from Barchart Cathie Wood Is Buying Shares of This Little-Known Ethereum Treasury Company. Should You? Dear Ford Stock Fans, Mark Your Calendar for August 11 Robinhood Stock Seemingly Can't Be Stopped in 2025. Is It Too Late to Buy HOOD Here? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Peloton stock has been rather disappointing for investors this year. At the time of writing, it's down more than 30% versus its year-to-date high of $10.25 set in the second week of February. Cost Discipline Could Drive Peloton Stock Up Further On Thursday, the connected fitness firm also confirmed plans of lowering another $50 million of run-rate expenses from indirect costs in its current financial quarter as well. The announcement is largely positive for PTON shares because it signals the new management's commitment to cost discipline. Over time, these initiatives will result in improved operating leverage, enhanced profitability, and greater investor confidence in the company's turnaround strategy. Peloton stock may be worth owning at current levels also because the Nasdaq-listed firm reduced its net debt by a whopping 43% in its fiscal 2025. How High Could PTON Shares Fly in 2025? UBS analyst Arpine Kocharyan recommends owning Peloton shares for the longer term since its darkest days are finally over as evidenced by its stabilizing subscriber base. Ahead of the earnings, Kocharyan upgraded the firm to 'Buy' and raised her price target to $11, indicating potential upside of another 55% from current levels. 'We're seeing better data trends for Peloton in terms of traffic and active users,' the UBS analyst told clients in her latest research note. Additionally, Kocharyan believes the company's focus on cutting costs could unlock significant further upside in PTON stock in the second half of 2025. Peloton Remains in Favor With Wall Street Analysts Investors could also take heart in the fact that UBS is far from alone in keeping bullish on PTON shares. The consensus rating on Peloton Interactive currently sits at 'Moderate Buy' with the mean target of about $10 indicating potential upside of more than 40% from here. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
2 days ago
- Business
- Business Insider
'Build on our Leadership in Cardio': Peloton Stock (NASDAQ:PTON) Jumps With Sales Decline Projections
Normally, when a company projects a decline in sales, the stock price takes a beating. But exercise equipment maker Peloton (PTON) actually managed to buck this trend by announcing a loss in sales for the current quarter alongside planned job cuts. This combination apparently made investors very happy, and they sent Peloton shares screaming upward nearly 7% in Thursday morning's trading. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Peloton projected revenue for the fiscal first quarter would come in between $525 million and $545 million. That was not only below estimates, a Bloomberg report noted, but was also '…a decline of 12% at the midpoint.' Meanwhile, full-year revenue for fiscal 2026 is projected between $2.4 billion and $2.5 billion. This matches analyst estimates, the report noted, but also meant a drop of around 2% against the same time the previous year. Peloton has been almost eagerly pursuing a course of cost-cutting ever since its new CEO stepped in, and another wave of layoffs is expected to hit. Now, Peloton plans to lay off 6% of its global workforce, the report noted. Specifics were not cited, though, aside from a phrase that will likely serve as cold comfort for those cut off: the cuts were '…necessary for the long-term health…' of Peloton itself. Pivot to Wellness But no company on Earth can cut its way to profitability without making sure revenue comes in. To that end, Peloton is looking to make a bit of a pivot to 'wellness,' reports note. While it could be argued that Peloton was always about wellness—especially given its focus on exercise—there was room to do more. To that end, Peloton will be focusing on 'health span,' or the length of time a person lives in good health. People are living longer, Peloton points out, but they are also living 'sicker.' Peloton plans to support improving 'health spans' with more personalized training programs, meditation and sleep features, and an app known as 'Strength Plus.' What is the Prediction for Peloton Stock? Turning to Wall Street, analysts have a Moderate Buy consensus rating on PTON stock based on five Buys and seven Holds assigned in the past three months, as indicated by the graphic below. After a 137.25% rally in its share price over the past year, the average PTON price target of $8.47 per share implies 12.33% upside potential.
Yahoo
3 days ago
- Business
- Yahoo
Peloton Stock Jumps On Cost Cuts And Wellness Push
Peleton (NASDAQ:PTON) jumped 7% Thursday after Peloton forecast a 12% Q1 revenue drop and unveiled cost cuts. Usually a sales decline would sink the stock, but Peloton said fiscal Q1 revenue will hit $525 million$545 million, a 12% mid-point dropand announced it will trim 6% of its global workforce. That mirrors full-year guidance of $2.4 billion to $2.5 billion in revenue, down about 2% Y/Y for fiscal 2026. Warning! GuruFocus has detected 7 Warning Signs with PTON. Peloton's new CEO is leaning into a wellness pivotfocusing on health span with personalized training, meditation and sleep features plus a new Strength Plus appto offset sluggish sales. While details on the layoffs were spare, management called them necessary for the long-term health of the business. Why it matters? Investors cheered the balance of fiscal discipline and fresh service launches, betting Peloton can stabilize revenue by cutting costs and expanding offerings. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
