Shares of Peloton (PTON) hit another fresh 52-week low, with the company’s latest news revealing it would be temporarily halting production of its fitness products. The once-darling of Wall Street has seen its stock price fall from an all-time high of $166.57 to the mid-$20’s, for a decline of 86%.
Internal documents from earlier this month revealed demand for Peloton’s connected fitness equipment remains in a free-fall due to consumers’ price sensitivity and increased competition. Additionally, the reopening of gyms over the past year has seen consumers shift back away from spending money for at-home fitness equipment.
These latest developments represent a clear sign PTON will be looking to slash costs while attempting to control its inventory levels. This will also likely include job cuts along with store closures.
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