Peloton used to be the Street darling, shooting up nearly 10 times following the outburst of the COVID pandemic since Mar 2020. Honestly I didn't expect it to be doing so well. I have never understood why a sporting bicycle with the WiFi functionality and a TV screen would be so attractive. But people did chase it like crazy, driving the stock from $10s to about $170 within 10 months. Then the reality set in. Since its peak in Dec last year, it has entered a downward channel. And its latest earnings report just days ago added the last straw on it. PTON tanked by being cut in half, Ouch!!
Clearly its wheels are falling off miserably. The big question is: have we seen the worst of it by now? I doubt it. Even with such a grave correction, it is still very expensive based on its fundamentals. Its weekly chart is still seeing a downward trend. Sure, technically speaking, it is quite oversold in the short term and there is a good chance it will try to bounce. But I suspect any bounce attempt will be a dead cat bounce, which will be followed by another harsh selloff. If you are itching to do bottom fishing, just be ready to dodge the falling knife that may come down any moment.😨
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