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Peloton Takes Another Leg Lower after New Analyst Downgrade on December Concerns

Published 12/31/2021, 06:36 PM
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by Daniel Shvartsman

Investing.com - Peloton (NASDAQ:PTON) shares took another leg lower in pre-market trading after the latest analyst downgrade.

Shares of the exercise equipment maker were down 2% in the last morning session of the year. JMP analyst Andrew Boone may be the trigger, as he downgraded the stock to Market Perform from Outperform on concerns that the December quarter is not going well.

Boone cited year over year declines in web traffic per SimilarWeb (NYSE:SMWB) as a sign that Peloton is struggling to catch up to past growth trends amidst the pandemic pull forward effect. He also wanted to see consensus estimates rise before regaining confidence in the stock.

Peloton rallied 7.6% yesterday amidst a recovery day for a lot of 2021's losers, but that came off of its previous 52-week low. The company is down 75% year to date, the biggest loser on the Nasdaq 100, as the giddiness over pandemic-induced demand has worn off and management has struggled with both forecasting the business for the current fiscal year (which ends in June 2022), and ancillary controversies like its morbid role in the Sex and the City tv show's return and CEO/Founder John Foley's holiday party.

 

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