These Politicians Are Still Holding On to Their Peloton Positions
Peloton (PTON:US) stock collapsed over 70% in 2022 with the last year’s low marking a 96% plunge from the all-time high set in 2022. The at-home-gym business has struggled to cope with the post-pandemic environment after surging more than 850% since the Covid-19 outbreak in February 2020.
In November, Peloton reported a bigger-than-expected loss, in addition to providing a soft forecast for the holiday season. As a result, shares plunged again as both earnings per share and revenue came in below the average analyst estimate.
“Given macroeconomic uncertainties we believe near-term demand for Connected Fitness hardware is likely to remain challenged,” the company said.
As shares were constantly trading downward since early 2021, many investors have attempted to look for a bottom in the beaten-down stock. The list of investors who lost money by betting on the recovery in Peloton stock is very long, and it includes some members of Congress.
For instance, Congress representative Jim Banks was buying Peloton stock in November 2021 when they traded near $50. At this point, Peloton shares were already down over 70% from their peak. What Rep. Banks probably wasn’t expecting was another 80% plunge in stock from the moment he bought Peloton stock.
Congresswoman Marie Newman, as well as her colleagues John Hickenlooper and Tomasz Malinowski, were also looking to time a bottom in Peloton stock.
While new CEO Barry McCarthy is adamant the “ship is turning,” it is likely that Peloton investors will be forced to wait a long, long time before that positive business change is reflected in shares.
