Latest news with #PelotonInteractive
Yahoo
a day ago
- Business
- Yahoo
Can $10,000 in Peloton Stock Turn Into $50,000 by 2030?
Key Points Peloton stock has seen huge sell-offs since hitting a valuation high during the height of the pandemic. The company's stock trades at heavily beaten-down levels, and recently posted an unexpected quarterly profit. Peloton could see gains, but challenges facing the business make it unlikely to be an explosive winner. 10 stocks we like better than Peloton Interactive › Peloton (NASDAQ: PTON) had its initial public offering (IPO) in September 2019, and the stock has taken investors on a wild ride since its market debut. The stock had its public debut shortly before the coronavirus pandemic, whose related shelter-in-place and social-distancing conditions resulted in dramatic changes to daily life. Peloton stock saw massive gains as pandemic-related dynamics resulted in skyrocketing demand for its in-home exercise equipment and related service packages. Unfortunately, the company's sales momentum saw a substantial drawdown as tailwinds connected to the pandemic receded. As of this writing, the company's share price is down roughly 87% over the last five years of trading. On the heels of continued sell-offs this year, Peloton is valued at just 1.2 times this year's expected sales. Meanwhile, the company posted an unexpected profit in the fourth quarter of its last fiscal year -- which ended June 30. Does Peloton have a path to a massive comeback and turning a $10,000 investment into $50,000 over the next five years? Could Peloton stock be one of the market's next big comeback stories? With the quarterly results that Peloton published on Aug. 7, the company reported earnings per share of $0.05 on sales of $606.9 million. The results came in far better than the average Wall Street analyst estimates, which had actually called for a loss of $0.05 per share on revenue of roughly $579.9 million. Peloton managed to post an unexpected shift into profitability thanks to some big cost-cutting moves, but revenue was still down roughly 5.7% year over year in fiscal Q4. The company announced $100 million in new cost-cutting moves for the current fiscal year with its latest quarterly report and said that it expects sales will decline roughly 2% annually in the current fiscal year. While it's not impossible that new business developments or unexpected catalysts could spur big returns for the stock, it seems highly unlikely that a $10,000 investment in the company will be worth $50,000 five years from now. Do the experts think Peloton Interactive is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Peloton Interactive make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,060% vs. just 182% for the S&P — that is beating the market by 877.59%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 11, 2025 Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Peloton Interactive. The Motley Fool has a disclosure policy. Can $10,000 in Peloton Stock Turn Into $50,000 by 2030? was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
5 days 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
Globe and Mail
7 days ago
- Business
- Globe and Mail
Peloton Stock Is Beaten Down Now, but It Could 10X
Key Points Peloton's stock has plummeted from its pandemic-era highs. Its equipment sales are slipping and it's losing paid subscribers. But its margins are improving and it's narrowing its net losses. These 10 stocks could mint the next wave of millionaires › Peloton Interactive (NASDAQ: PTON), one of the hottest growth stocks during the pandemic, closed at a record high of $167.42 on Jan. 13, 2021. That marked a 477% gain from its initial public offering (IPO) price of $29 on Sept. 29, 2019, and would have turned a $1,000 investment into $5,770. At its peak, the exercise bike maker's enterprise value reached $47.2 billion, or 12 times the revenue it would generate in fiscal 2021 (which ended in June 2021). But today, it trades at less than $7 with an enterprise value of $3.1 billion, which is just over one times this year's revenue. Peloton initially attracted a stampede of bulls during the pandemic as gym closures and other lockdown measures drove more people to buy its connected exercise bikes and treadmills, which are tethered to streaming video classes via paid subscriptions. But it couldn't maintain that momentum after the pandemic passed and cheaper competitors entered the market. A brand-tarnishing recall, inflation, and rising interest rates exacerbated that pressure. The company is still struggling to overcome many of those challenges, but I believe its beaten-down stock could potentially deliver a 10-bagger gain (or more) in a few years if it plays its cards right. The bull case vs. the bear case Peloton has been led by three CEOs in less than six years: its co-founder John Foley, who stepped down in 2022; Barry McCarthy, a former Netflix executive who left in 2024; and Peter Stern, a former Apple (NASDAQ: AAPL) executive. Foley aggressively expanded Peloton with new products and services, but McCarthy and Stern reined in those growth plans, cut costs, and focused on retaining its existing subscriptions. The bulls believe Peloton will stabilize as it expands its stickier subscriptions, and that it's an attractive takeover target for a bigger tech company like Apple. The bears don't think it can expand its subscriptions fast enough to offset the headwinds for its lower-margin hardware business, which sells connected bikes, treadmills, and rowing machines. Under McCarthy, Peloton reduced its equipment prices, rolled out new subscription services, hiked its subscription fees, outsourced its production to a Taiwanese manufacturer, and started selling its products on Amazon and other third-party retailers to expand its presence beyond its first-party website. It also laid off thousands of employees. Is Peloton's turnaround working? In fiscal 2024, Peloton's subscription revenue rose 2% to $1.71 billion, but its sales of connected fitness products fell 12% to $992 million. As a result, its total revenue dropped 4% to $2.7 billion and marked its third consecutive year of declining sales. Its market is also still shrinking as more competitors carve up the field. For the full year, its total number of members dipped 2% to 6.4 million, its number of paid connected fitness subscribers dipped 1% to 2.98 million, and its paid app subscribers fell 26% to 0.62 million. On the bright side, its total gross margin jumped from 33.1% to 44.7% as it reined in its previous hardware discounts and generated more revenue from its higher-margin subscriptions. It also more than halved its net loss from $1.26 billion to $552 million. As a result, its free cash flow (FCF) improved from negative $470 million in fiscal 2023 to negative $86 million in fiscal 2024. For fiscal 2025, Peloton expects its total revenue to decline 9% to around $2.5 billion as its number of paid connected fitness and paid app subscriptions dip 7% and 12%, respectively. Yet it still expects its gross margin to rise to 50% as its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumps from $3.5 million to $350 million. Its FCF, which rose to positive $211 million in the first nine months, should also stay positive for the full year. Why Peloton's stock could soar tenfold Peloton faces formidable long-term challenges and hasn't proven its business is sustainable yet. But by expanding its gross margins, narrowing its losses, and strengthening its FCF, it's right-sizing its business and setting up the firm foundations for an eventual recovery. If Peter Stern can successfully preserve Peloton's brand appeal, defend its niche, and finally gain more paid subscribers again, its revenue should rise again. If its top-line growth accelerates again, it could easily command a higher valuation -- and it wouldn't be surprising to see it eventually valued at ten times instead of one times its forward sales. So while I'm not saying Peloton is a guaranteed 10-bagger, I don't think investors should overlook its turnaround potential. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,047%* — a market-crushing outperformance compared to 181% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of August 4, 2025
Washington Post
07-08-2025
- Business
- Washington Post
Peloton: Fiscal Q4 Earnings Snapshot
NEW YORK — NEW YORK — Peloton Interactive Inc. (PTON) on Thursday reported fiscal fourth-quarter net income of $21.6 million. On a per-share basis, the New York-based company said it had net income of 5 cents.
Bloomberg
30-07-2025
- Business
- Bloomberg
Stock Movers: MARA Holdings, Peloton Interactive, Humana
On this episode of Stock Movers: - MARA Holdings shares (MARA) rose after the Bitcoin miner reported second-quarter adjusted Ebitda that beat the average analyst estimate amid gains in the price of the world's biggest cryptocurrency. - Peloton Interactive shares (PTON) rose after UBS upgraded to buy from neutral citing upside to full-year 2026 Ebitda expectation supported by top-line growth and further cost cuts. - Humana shares (HUM) rose after the health insurer boosted its adjusted profit and revenue forecast for the full year, with the new outlook topping the average analyst estimate.
