What Happened?
Shares of exercise equipment company Peloton (NASDAQ: PTON) jumped 6.2% in the morning session after the company officially launched its 2025 holiday sales event for its fitness equipment. The promotions, which covered the company's popular Bikes, Treads, and Rows, were designed to drive sales during the crucial holiday shopping season. By offering discounts, Peloton aimed to attract new customers and boost its revenue. The market's positive reaction suggested investors were optimistic that the sales event could lead to stronger financial performance for the connected fitness company.
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What Is The Market Telling Us
Peloton’s shares are extremely volatile and have had 61 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 10 months ago when the stock gained 17.9% on the news that the company reported strong fourth-quarter results, with EBITDA significantly surpassing Wall Street estimates and guidance for the next quarter coming in well above expectations. Gross margins improved significantly, with Connected Fitness Products gross margin reaching 12.9%, due to a shift toward higher-margin products and lower costs. This margin expansion helped drive the earnings outperformance despite revenue pressures. Overall, this quarter showed that profitability is strong and that the turnaround is in progress.
Peloton is down 23.1% since the beginning of the year, and at $6.79 per share, it is trading 35.8% below its 52-week high of $10.57 from December 2024. Investors who bought $1,000 worth of Peloton’s shares 5 years ago would now be looking at an investment worth $61.29.
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