With Peloton Interactive Stock Sliding, Have You Assessed The Risk?
Peloton Interactive (PTON) stock is down 25.7% in a day. The recent slide reflects renewed concerns around disappointing Q2 earnings, declining subscriptions, and CFO departure, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Peloton Interactive stands today.
- Size: Peloton Interactive is a $1.8 Bil company with $2.5 Bil in revenue currently trading at $4.39.
- Fundamentals: Last 12 month revenue growth of -8.7% and operating margin of 3.9%.
- Liquidity: Has Debt to Equity ratio of 1.08 and Cash to Assets ratio of 0.51
- Valuation: Peloton Interactive stock is currently trading at P/E multiple of -17.4 and P/EBIT multiple of 59.5
- Has returned (median) -23.7% within a year following sharp dips since 2010. See PTON Dip Buy Analysis.
These metrics point to a Weak operational performance, alongside Very Low valuation – making the stock Fairly Priced. For details, see Buy or Sell PTON Stock
That brings us to the key consideration for investors worried about this fall: how resilient is PTON stock if markets turn south? This is where our downturn resilience framework comes in. Suppose PTON stock falls another 20-30% to $3 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- PTON stock fell 97.4% from a high of $167.42 on 13 January 2021 to $4.30 on 27 October 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $10.57 on 17 December 2024 , and currently trades at $4.39
| PTON | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -97.4% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- PTON stock fell 41.7% from a high of $33.47 on 4 February 2020 to $19.51 on 12 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 15 April 2020
| PTON | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -41.7% | -33.9% |
| Time to Full Recovery | 34 days | 148 days |
Feeling jittery about PTON stock? Consider portfolio approach.
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