A promised turnaround plan might be put into action very soon.
Peloton Interactive (PTON -2.12%) stock was demonstrating Phoenix-like qualities over the past few days, on the back of a media article that lit a fire under the stock. Week to date as of Friday before market open the company’s stock had flown more than 8% higher in price, according to data compiled by S&P Global Market Intelligence.
Time for a turnaround
Already boosted by an analyst recommendation upgrade from bank Goldman Sachs published on Friday, Peloton stock got another boost from a top financial media outlet this past Thursday.
Image source: Getty Images.
That morning, Bloomberg reported the company is aiming to launch its most significant set of product upgrades in years. Citing unnamed “people familiar with the matter,” the news agency wrote that this could occur as soon as October with the rollout of a new Peloton bide, a treadmill, and an integrated artificial intelligence (AI) platform, among other offerings.
Management also intends to tweak its sales effort. Apparently it will step up sales of used equipment and offer more self-assembly options for its customers.
Bloomberg said a Peloton spokesperson, who it did not name, refused to comment on the article.
Fall from grace
Peloton is one of the poster children for stocks that blasted higher during the pandemic but have since plummeted back to Earth. Its products were ideal for people wanting to get fit but shut in to their homes, and sales soared commensurately. Since then the company hasn’t really been able to halt sales declines, although CEO Peter Stern recently promised a turnaround plan would yield results.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group and Peloton Interactive. The Motley Fool has a disclosure policy.
