Peloton: No Credit For The Turnaround

Jeffrey Himelson2.97K FollowersFollow5ShareSavePlay(13min)CommentsSummaryPeloton's business is in the best shape it has ever been in.Despite this, the company trades near its lowest market cap ever.The market is not pricing in PTON's growth opportunities.MoMo Productions/DigitalVision via Getty Images If I were to give you two investment options below, it's pretty clear that Option B sounds more appealing. Option A ~1.6 million subscribers $1 billion of total revenue Gross profit margin of ~39% AdjustedThis article was written byJeffrey Himelson2.97K FollowersFollowJeffrey Himelson is a corporate lawyer practicing in NYC. He previously worked as the assistant general counsel of a prominent hedge fund and graduated from Columbia Law School in 2017. He is best known on Seeking Alpha for his article "The Trade That Netted Me More Than a 2000% Return."Mr. Himelson is also the author of a book series to teach kids about business: Kimmy and Jimmy's Business Adventures.Analyst’s Disclosure:I/we have a beneficial long position in the shares of PTON either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You