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Although robust investments in content and software features and strong connected-fitness-subscription membership growth have helped its stock gain 72.7% in price over the past year, the stock is down 23.2% over the past six months, and closed yesterday’s trading session at $120.93, 29.3% below its 52-week high of $171.09.
With people returning to gyms now that 70% of U.S. adults have had at least one shot of COVID-19 vaccine, the demand for at-home fitness equipment and services is expected to decline. This could be challenging for the home fitness operator’s business. Furthermore, PTON’s sky-high valuation and ongoing class-action lawsuits could create pessimistic sentiment toward the stock.
