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PTON stock climbs 12% as Peloton unveils new indoor rower


Platoon (NASDAQ:PTON) the stock is up 12% today after the home fitness company unveiled its indoor rowing machine.

Source: JHVEPhoto / Shutterstock.com

In the early afternoon, PTON shares jumped more than 12%. This move is well outpacing the market, although a range of high-growth tech stocks are posting impressive gains today.

A former pandemic darling, Peloton has come under immense pressure in 2022. This stock has fallen nearly 90% from its 52-week high of $129.70.

Today however, investors are bidding on PTON shares on commodity expansion news.

PTON Stocks Rise on New Product Reveal

Peloton is a well-known company for its high-performance stationary bikes and online courses. Its subscription-based business model was the envy of its fitness peers at the height of the pandemic, with demand outstripping supply to a degree many investors did not expect.

Of course, this was back when gyms were completely closed and home fitness was the only type of fitness. Today, the thesis has changed a lot for Peloton. Consumers are back to training in gyms, and Peloton is looking to get creative with growth levers.

One of these levers is product expansion. The launch of the company’s Tread treadmill was met with mixed results. However, it’s yet another revenue stream, and one that the company says will work well in the long run.

Today at its Homecoming event, Peloton teased that it is expanding its lineup even further. This time, Peloton is looking to disrupt the rowing market with a connected indoor rower. The idea is that customers looking to build their home gyms or replace their rowers with Peloton-branded rowers will flock to this product. Consumer expectations are high as this is a product that Peloton has been teasing for some time.

Currently, Peloton is among the most difficult stocks to value. It is difficult to determine what the company’s revenues and profits will be in one quarter, let alone in a year or five years. And while this new product may change the math somewhat, I’m not sure it moves the needle much. Investors may want to wait to see where PTON stock settles from here, especially after today’s impressive move.

As of the date of publication, Chris MacDonald had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.

Chris MacDonald’s love of investing has led him to pursue an MBA in finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative long-term investment outlook.

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