Stocks To Watch: It has been a roller-coaster ride for Peloton Interactive Inc [NASDAQ: PTON] ever since it went public in September. The stock dropped immediately after IPO following a lawsuit from music publishers and general fears of a recession in the equity markets. However, it has rebound in recent weeks and at yesterday’s close, the stock was trading at $24.61, close to its IPO price over a month ago.
Today, the stock was surging pre-market after reporting its Q1 results. It has reported an EPS loss of $1.29 on sales of $228 million. Analysts were expecting losses of $0.36 per share on revenues of $197 million. From a look at its year-on-year performance, the company is up by over 103% and loss per share has declined from $2.18 in the last financial year to its current $1.29. The key areas of focus for investors remain the company’s market, increasing losses and growing competition. Legal issues with music publishers and rival businesses are also a factor that will play a role in this stock’s price action, post earnings. According to Bloomberg, the PTON’s patent infringement lawsuits against rivals may not reduce the company’s risks from lower cost competitors. However, they will be a huge test for the company’s intellectual property strength.
Revenue-wise, the key factor likely to drive up its revenues in coming quarters is the 30-day in-home free trial. There is also the fact that the company has planned to open new studios in New York and London.
From its price action, PTION was gaining momentum pre-market, but it has eased up post-earnings. It is an indicator of the investor sentiment in the company at the moment. In terms of technical analysis, the level to watch in the short-term is around $27. This is a major short-term resistance, and if it’s broken, bulls could take control.
About Peloton Interactive Inc
Peloton Interactive Inc is an American interactive fitness products provider. Some of its products include the peloton bike and the peloton tread. Currently the company has about 1.4 million customers. It has its headquarters in New York.