Peloton Interactive Inc. shares slumped 33% on Friday (November 5), wiping off about $9 billion in market value as analysts predicted a tough path ahead for the pandemic-darling amid a return by economies to normalcy.
At least 15 analysts lowered their price target on the Peloton stock after the company cut its annual sales forecast by up to $1 billion on Thursday, as it reported its slowest quarterly sales growth in over a year.
Peloton’s near-term sales visibility is clouded by slowing traffic online, a mix shift to the lower priced Bike, and slower adoption of Tread, highly rated analyst Dana Telsey of Telsey Advisory Group said in a note.
Telsey cut her rating on the stock to ‘market perform’ from ‘outperform’, but remained positive about its long-term prospects, as did some other brokerages.
In a bid to tackle falling sales, the New York-based company outlined plans to boost marketing spending.
The home fitness leader’s shares were down 33% in early trade. They have lost 43% this year.
(Production: Soren Larson)