Peloton can collaps by 86% under competitive pressure

After Peloton launched an advertisement that was sharply received and criticized earlier in December, the company’s shares fell significantly. Now one of the most famous short-sellers says that hard times for the company are yet to come.

Andrew Left, who manages Citron Research, has set a company price target of $ 5 for 2020. This is a 86% drop from current levels at $ 34.77.

Strong competition outweighs the company. The Peloton Bicycle Ergometer turns out to lack as much functionality as its competitors, which are also much more affordable and with more features.

Peloton is lagging behind many of its competitors, who create wheels with more extras and better ones with rotating screens and platforms that allow streaming Netflix, TV and iPad applications. Since 2014, Peloton’s hardware has not changed significantly.

Yesterday, Peloton wiped out 9% of its value, with the company previously up 20% from its IPO in September despite misunderstandings with advertising.

Source: Markets Insider

 Trader Martin Nikolov

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