The future of fitness company, also known as Peloton Interactive Inc (NASDAQ: PTON) is cashing in on coronavirus crisis. But as I said, this is not just Covid or stay at home stock. It’s the future of fitness. The bumpy road is behind us, once Corona came Peloton was suddenly in high demand on the stock exchange. On Monday, the manufacturer of fitness bikes and treads gained more than six percent and climbed to a new record high. A worsening of the crisis could boost Peloton’s business again.
Given ongoing coronavirus infections, the CDC has urged all U.S. residents to continue to take the situation seriously. The pandemic is not over yet, Jay Butler, the CDC’s infectious disease officer, said on Friday.
New strict exit restrictions “may become necessary again”. That has to be decided at the local level depending on the infection process.
Investors will wake up to memories of the first lockdown on Monday. Because the gyms were closed, many ordered a Peloton bike or treadmill. In mid-May, the company broke the million mark in the number of customers. Peloton had almost reached the annual forecast (the business year ends in June) of 1.04 to 1.05 million.
And if you are still wondering how long of a game Peloton is, read this:
Gym chain 24 Hour Fitness is filing for bankruptcy and permanently shuttering more than 100 clubs, including 13 in the Bay Area. Gold’s Gym, another national chain, filed for Chapter 11 bankruptcy on May 5. It has permanently shutters about 30 of its 700 gyms.Source
Somebody said it before, I cannot remember the source, but Peloton is the Netflix of Fitness. Go buy your Peloton.