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3 Facts About Peloton You Must Know Before Buying the Stock

^{Published on 2024-12-14 05:20:57 - The Motley Fool}
 

• However, there's been a bit of a resurgence. This consumer discretionary stock has soared 219% in just over seven months, as it aims to win back investors. Before you decide to ride the momentum and buy Peloton, here are three things you need to know.

The article from The Motley Fool discusses three critical aspects investors should know about Peloton Interactive before considering buying its stock. Firstly, Peloton has experienced a significant decline in its stock value, dropping over 90% from its peak, largely due to a post-COVID slump in demand for at-home fitness equipment. Secondly, the company has been focusing on cost-cutting measures, including layoffs and reducing its physical retail presence, to improve its financial health. Despite these efforts, Peloton still faces challenges with negative free cash flow, although it has shown some improvement. Lastly, there's potential for growth through new product lines like the Peloton Row and expanding its subscription services, which could help stabilize and grow revenue. However, the company's future remains uncertain as it navigates through a highly competitive fitness market and seeks to regain consumer interest.

Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2024/12/14/3-must-know-facts-peloton-before-buying-stock/ ]

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