Connect with us

Hi, what are you looking for?


Peloton is on a path to penny stock status in 2023

buy Peloton Stock dip

Peloton (NASDAQ: PTON) stock price has plunged in the past four straight days as concerns for the company remained at an elevated level. The shares slipped to a low of $8, which was the lowest level since November rd. It has crashed by more than 95% from its all-time high.

Why is Peloton collapsing?

Peloton share price has crashed in the past few months as investors continue worrying for the company’s direction. After experiencing remarkable growth during the pandemic, the company has lost its momentum. People are now more open to going to their local gyms to exercise.

The company has made several changes to its business model. It has reduced the prices of its equipment and even moved to sell them on Amazon, as we wrote here. In the past, it focused on selling its products directly to consumers.

Peloton stock crashed this week after the company introduced a new refurbished bike program for its customers in the US and Canada. It will sell its refurbished bike for $1,145 and bike+ for $1,995. The price will be inclusive of delivery and setup. It hopes that lower prices will attract more customers, who will then subscribe to its digital products.

Peloton has also had disappointing financial results. The firm expects that its holiday quarter sales will be between $700 million and $725 million. Analysts were expecting it to make $866 million. It made a loss of $1.20 per share while its revenue of $616 million was below estimates of $637 million.

Peloton faces an uphill battle to become great again. While subscriptions are expected to rise in January as people set their New Year resolutions, it will be hard for it to maintain this growth momentum. Further, the company will likely struggle to attract more bike buyers as inflation remains at an elevated level.

Peloton stock price forecast

peloton stock
PTON chart by TradingView

The daily chart shows that the PTON stock has been in a freefall in 2022. Recently, its attempts to recover hit a barrier when it retested the important resistance at $14.33. Now, the stock has collapsed below the 25-day and 50-day moving averages. It is also approaching the important support level at $6.61, which was the lowest level this year.

Therefore, the shares will likely continue falling in 2023 as cash burn continues. If this happens, Peloton will become a penny stock as it moves below $5. The bearish view will be invalidated if it moves above the important resistance at $14.33.

The post Peloton is on a path to penny stock status in 2023 appeared first on Invezz.

You May Also Like


Mimiq, Inc is announcing today the launch of their new product, Mimiq Track, at CES as part of their latest product line to operate...


Bayerische Motoren Werke AG (ETR: BMW) shares have advanced more than 15% since the beginning of October 2022, and the current share price stands...

Editor's Pick

Real gross domestic product rose at a revised 3.2 percent annualized rate in the third quarter versus a 0.6 percent rate of decline in...

Editor's Pick

After the final lecture of my Fall 2022 International Economic Policy course (an undergraduate offering meant to introduce non-economics majors to the economics of...

Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2023