Peloton Stock Drops 9% on Downgrade
<p><a href='https://financialmodelingprep.com/financial-summary/PTON'>Peloton (NASDAQ:PTON)</a> shares plunged more than 9% intra-day today after Wolfe Research downgraded the company to Underperform from Peer Perform with a price target of $6 per share. Key factors behind Wolfe's bearish stance on Peloton include declining demand in the long term, a lack of confidence in new growth initiatives, and an unclear path to achieving sustainable profitability and free cash flow.</p>
<p>The analysts noted concerns about the potential decline in subscriber growth despite the significantly reduced outlook for Peloton's long-term growth. Additionally, the analysts pointed out that the unit economics of the business is deteriorating due to new strategic initiatives and limited pricing power.</p>
<p>Furthermore, Wolfe highlighted that new growth initiatives such as FaaS and Digital are still in progress and their potential contribution to sustained growth and profitability remains uncertain.</p>

NASDAQ:PTON