Peak Hours News – Investing tips, Stock, Economy News
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Stock

Peloton stock price is surging: is this a dead cat bounce?

by December 2, 2022
written by December 2, 2022

Peloton (NASDAQ: PTON) stock price surged to the highest level since August 25 as investors bought the dip. The shares have rallied by almost 100% from its lowest level this year, giving it a market cap of over $3.8 billion.

Is PTON a good buy?

Peloton share price has staged a strong comeback in the past few weeks as investors bought the dip in technology stocks. Still, the shares remain about 93% from its all-time high. At its peak, Peloton was valued at more than $40 billion.

Peloton stock crashed as investors worried about the company’s slow growth and lack of profitability. Some market participants warned about the company’s new model, which includes selling on Amazon and other retailers.

The most recent results showed that the number of connected fitness subscriptions rose slightly to 2.97 million from the previous 2.966 million. Its connected fitness products revenue crashed to $204.2 million while its subscription revenue rose to $412 million. Its loss increased from $376 million to over $408 million while its free cash flow was minus $246 million, as we wrote here.

Peloton stock price rose after recent data pointed to strong exercise equipment sales during the ongoing holiday shopping. Data by Adobe showed that the category’s sales surged by 200% from the same period last year. Recent data also showed that its bikes were top sellers on Amazon.

Further, the shares have rallied as investors continue believing that it is a bargain since it has crashed in the past few months. Besides, America’s inflation has stabilised and the Fed has hinted that it will start pivoting, as I wrote in this article.

Still, Peloton shares face significant challenges ahead. For example, its important subscription revenue growth is expected to start slowing. Also, while the stock has plummeted, it remains overalued since its path to profitability remains uncertain.

Peloton stock price forecast

Peloton stock chart by TradingView

The 4H chart shows that the PTON stock price has been in a slow recovery in the past few weeks. In this period, it has more than doubled from its lowest point this year. It has moved above the 25-day and 50-day moving averages. The Relative Strength Index (RSI) has moved to the overbought level. 

Peloton has also formed a rounded bottom pattern, which is a bullish sign. Therefore, more upside will be confirmed if the stock manages to move above the important resistance at $14.3. If this happens, it will likely rise to about $20.

The post Peloton stock price is surging: is this a dead cat bounce? appeared first on Invezz.

0 comment
0
FacebookTwitterPinterestEmail

previous post
DAM Finance releases testnet for its omnichain stablecoin d20
next post
U.S. job market is still very hot: what to expect from stocks next week?

You may also like

IMF projects global growth at 2.9%; Disinflation to...

January 31, 2023

Chinese PMIs spark to life after covid restrictions...

January 31, 2023

Should you buy Apple shares ahead of its...

January 30, 2023

Mercedes-Benz just beat Elon Musk’s Tesla in its...

January 30, 2023

Exploring the puzzling logic behind Canada’s central bank...

January 30, 2023

Amid recessionary fears, Texas manufacturing disappoints for the...

January 30, 2023

Goldman Sachs reveals one of the best-positioned retail...

January 30, 2023

Are we in a ‘new bull market’ now?...

January 30, 2023

SoFi stock is up 15% on Monday: here’s...

January 30, 2023

Gold at all-time highs in Euro and GBP...

January 30, 2023
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Recent Posts

  • 5 classic but costly stock market clangers to avoid!

    January 31, 2023
  • The IAG share price has soared 30% this month! Am I too late to buy?

    January 31, 2023
  • Is the 7%+ British American Tobacco dividend yield safe?

    January 31, 2023
  • IMF projects global growth at 2.9%; Disinflation to bring little comfort

    January 31, 2023
  • If you don’t understand it, don’t invest in it

    January 31, 2023

Categories

  • Economy (12,606)
  • Editor's Pick (873)
  • Investing (371)
  • Stock (3,267)
About Us Terms & Conditions Privacy Policy Email WhiteListing Contact Us

Disclaimer: Peakhoursnews.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2023 PeakHoursNews.com. All Rights Reserved.


Back To Top
Peak Hours News – Investing tips, Stock, Economy News
  • Investing
  • Stock
  • Economy
  • Editor’s Pick