Goodbye, PTON Stock! What you need to know about the Nasdaq-100 news that is causing Peloton to stumble.


How mighty they have fallen. When we think of breakthrough stocks from the first wave of the pandemic, one name immediately comes to mind: Peloton (NASDAQ:PTON). For a company that specializes in high-end fitness equipment at home, the country that was forced to stay at home was the best case scenario for PTON stocks.

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As many were left without exercise equipment and community, Peloton’s equipment was able to provide both. But since the world reopened, however, we’ve found out how consumers really feel about the company’s expensive exercise bikes and treadmills. PTON shares have been falling for months, but this morning brings some news that promises to fall even more.

What’s going on with PTON stocks

Among the morning news is an important post from Nasdaq (NASDAQ:NDAQ). The decision? The multinational financial services corporation has confirmed that it will remove PTON shares from Nasdaq Index 100; The street reports that from Jan. 24. Old Dominion freight line (NASDAQ:ODFL) will replace PTON on the reference technology index.

Pelaton doesn’t have many arguments as to why he should stay. Since that writing, PTON shares have fallen more than 4% in the morning and show no signs of rebounding. This result pulls the stock into the red by more than 11% for the week. Its decline in the last month is even worse, recently exceeding 25%. Given the fact that this stock has fallen by more than 70% in the last six months, Nasdaq’s decision certainly makes sense.

Why it matters

Pelaton is known for making spinning wheels, but there is no positive impact on what this news means for the company. PTON shares have been slipping since the world reopened. Bears have been circling it for months and such a development will shut them down even faster.

Why did PTON shares crash? InvestorPlace by Larry Ramer recently shown with us exactly why. As Ramer notes, every macro trend has been working against the company lately. In 2020, the world forced consumers to stay at home. In addition, many had money to spend due to increased incentives. Two years later, however, many things have changed. Americans continue to prove that they are happy to return to the gym. And even if they didn’t, Pelaton’s expensive equipment had obviously lost its luster. Finally, when stimulants have dried up, fewer people have the extra income to splurge on luxury fitness products.

Fitness stocks are definitely as complicated as InvestorPlace’s Robert Waldo outlines. Of course, we know that the focus on fitness in the US will not diminish. But the question is just how will it develop?

What we do know is that he will not focus on Pelaton. Even being one of the most popular brands in its sector was not enough to reclaim even a fraction of the ground lost to PTON shares.

What it means

As the omicron version expanded in December this year, investors wondered if it could help boost PTON shares. More than a month later, however, this is clear InvestorPlace author Steve Booyens was right forecast. This stock will not play at home in 2022 unless its fundamentals improve. And so far nothing has improved.

As this company steps gloomily into the coming year, there is no reason for investor optimism. Today’s decision by Nasdaq will probably be the last nail in the coffin of PTON.

At the time of publication, Samuel O’Brient did not have (directly or indirectly) any position in any of the securities mentioned in this article. The opinions expressed in this article are those of the author and are the subject of Guidelines for publication.


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