Shares of connected fitness company Peloton Interactive (NASDAQ:PTON) have plunged in price since the company released a weak first-quarter earnings report. And because PTON company slashed its full-year financial outlook, is it wise to buy the shares now, on their dip? Read more to find out.New York City-based exercise bike and treadmill maker Peloton Interactive, Inc. (PTON) recently announced its first connected strength product, Peloton Guide. However, the company also cut its annual revenue forecast by $1 billion and lowered its subscriber growth and profit margin projections. Moreover, Argus Research has downgraded the stock from a ‘Buy’ rating to a ‘Hold’ rating, citing a higher expectation of losses over the rest of PTON’s fiscal year 2022.
The stock has declined 51.9% in price over the past month and 56.6% over the past three months to close yesterday’s trading session at $44. In addition, it is currently trading 74.3% below its all-time high of $171.09, which it hit on January 14, 2021. Furthermore, intensifying competition and reopening gyms pose a severe risk to the company’s market position. So, we think PTON’s near-term prospects look bleak.
Here is what could influence PTON’s performance in the coming months: