Peloton’s tiny sales gain triggers a stock surge
Peloton eked out sales growth for the first time since 2021, which has investors hopeful the company has put its worst days behind it.
The pandemic-era fitness star has found it difficult to keep investors happy since in-person gyms and fitness studios reopened. The change in tide now is partly because the company is selling less connected fitness equipment but more subscriptions.
Peloton’s latest quarterly sales were $643.6 million, ever so slightly higher than a year earlier. That’s great news when you consider the context: its sales had shrunk for the past nine straight quarters.
That sales nudge was welcomed by investors, who sent Peloton's stock up 23% in early trading, putting it on pace for its third-best day ever, according to FactSet data. The company is still down more than 90% from its pandemic-era peak.
