It seems that Peloton Interactive Inc. (NASDAQ: PTON) has attracted a lot of new buyers in 2020 amid the COVID-19 pandemic that is affecting most of the world. Despite its slow growth trajectory, the company is expected to increase sales in the coming quarters by introducing new products and expanding its international markets.
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The Peloton Interactive company was forced to recall its treadmills in May of this year due to serious image problems and a high number of accidents involving its treadmills. Consequently, shares of Peloton Interactive fell to approximately $ 80. Despite this, shares started rising again shortly after the company acknowledged the issue, though they are now trading 30 percent below 52-week highs. This is due to investors’ confidence in the company’s long-term prospects, which has just begun to capture the attention of the potential market.
According to Peloton Interactive Inc. (NASDAQ: PTON), its target market in the US is 15 million households. Although, the providers of simulators only work with 2.08 million households (which is the number of subscriptions to their services). Management of the company recently announced it is currently achieving the highest growth rates in history. Peloton Interactive currently offers its digital app subscription service for $ 12.99 per month, including yoga, jogging, strength training, and other activities. In the last quarter, the number of subscribers to digital apps and connected fitness products surpassed five million.
The portfolio of Peloton Interactive’s products continues to grow. Currently, the company offers two models of exercise bikes: the Bike and the Bike +. The new model has a rotating screen for off-bike strength training, in addition to other features, including Apple GymKit support. The Peloton workout library was recently updated and includes new yoga and Pilates programs. As part of their long-term growth strategy, the international market is important. A new market for the company was Australia, but it planned to add one or two additional countries every year in the future.
In the fourth quarter of the fiscal year 2021, revenue is forecast to reach $ 915 million, increasing 51 % year-on-year. This is below three-digit growth from last quarter. In any case, this slowdown is normal when your company is growing. Furthermore, growth has slowed due to eased restrictions related to the pandemic. The interest in Peloton Interactive’s simulators and training programs is high enough for investors to continue to show interest in the company.
Peloton Interactive Inc. (PTON) fell -0.91% to close at $112.09 on Monday. The number of shares traded was 6.62 million, which is lower than the average volume of 13.35 million shares for the last three months. A range of $111.5478 to $114.75 was observed during the trading session. The company had an earnings per share ratio of 0.67. PTON’s stock rose 2.09% over the past five sessions and moved 17.63% over the past month. On a year-to-date basis, the stock has lost -26.12%. The stock’s 50-day moving average of $104.04 is lower than the 200-day moving average of $116.52. In addition, the stock’s RSI is currently 59.35.
