What Happened?
Shares of exercise equipment company Peloton (NASDAQ: PTON) jumped 12% in the afternoon session after Canaccord analysts upgraded the stock's rating from Hold to Buy and kept a target price of $10. The analysts cited some of the reasons for the upgrade, noting "Peloton is the clear leader in the connected fitness industry, which they invested in early on and built a 6M loyal member base that has a high-margin recurring revenue stream."
The shares closed the day at $7.06, up 16% from previous close.
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What The Market Is Telling Us
Peloton’s shares are extremely volatile and have had 64 moves greater than 5% over the last year. But moves this big are rare even for Peloton and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 11 days ago when the stock dropped 5.8% as the major indices tumbled after the Trump administration confirmed that the planned 25% tariffs on imports from Canada and Mexico, two of the largest trading partners of the United States, would proceed as planned. The news added to the market's growing unease, which had been building since the start of 2025.
For Wall Street analysts, investors, and businesses, the announcement underscored the urgent need to plan ahead and factor the potential downside of the tariffs into their financial forecasts. Key concerns included rising production costs, which are often passed on to consumers, and the risk of inflation, further heightening economic uncertainty.
Peloton is down 20.2% since the beginning of the year, and at $7.05 per share, it is trading 33.3% 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 $316.85.
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