Is Peloton the right stock to benefit from the quarantine?Published by Terence Mahier | Source
You might have heard of Peloton, the startup that sells connected cycles for home use, as well as subscriptions to stream workout classes through an app available to all 🚴♀️📲
Peloton is in the middle of an investors' dilemma: on one hand, it is THE stock that could benefit from the quarantine, as consumers are increasingly turning to at-home workouts to maintain their fitness during the pandemic 😷
On the other hand, some big names voiced growing concerns that "virus stocks" like Peloton (or Zoom) might not look so attractive once the pandemic is over 😴
Do you think stay-at-home stocks like Peloton are just a temporary craze?
Peloton saw total app downloads increase five times more in March than February, while its iOS user numbers doubled. But it has also seen some negative impacts from the deadly virus: the company closed all its retail locations and stopped allowing customers to attend in-studio workout classes 🤔
The long-term question that investors have in mind is whether the Coronavirus crisis will change consumers habits for good, in the case of Peloton, whether consumers will start increasingly working out from home rather than in Gyms 🏋️♂️
Yesterday, a famous short-seller (who planned the fall of the Chinese coffee company "Luckin Coffee") warned investors on CNBC that "virus stocks" might not be the panacea... What do you think?
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- Newspill Team 💊
03-Apr 09:12 (Eastern Time)
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