The coronavirus pandemic for once had brought lives to a standstill. With lockdowns and curfews prevailing around the world, many companies had to face the complete shutdown of their work for that period. The fitness equipment company Peloton Interactive Inc. (NASDAQ: PTON) also had to go through the same for some time but this firm has had a better time than other companies. In October, when the cases of Covid-19 were still rising, this company performed fairly well on the stock market. We can say, better days and better gains are expected from Peloton, whether the pandemic subsides or not.
Partnership with Beyonce: A Major Step
The company has partnered with superstar Beyonce. It is a multiyear content and membership partnership which is greatly going to affect the company by bringing in great revenues and profits. Series have been created for the same based on the workout (consisting of yoga, indoor cycling, running, meditation, and strength). This has to be a very important and major step for the company. This gives yet another reason as to why the stocks of this company are profitable and good for investing.
- 52 Week Range: $17.70 – $139.75
- Average Volume: 23,045,441
- Market Capital: $30.707B
During this time, the company is working quite smartly and that is the reason why it is still more stable than many other firms that have incurred severe losses. The recent announcement by Pfizer about their vaccine, which is more than 90% effective against the disease and has been tested well, affected the stocks of many companies and Peloton was one of those. The stocks of Peloton went down on the day this was announced while Pfizer’s stocked surged up high. The vaccine, however, is very important and once it comes up, the companies can gear up and cover up the losses. The news did bring down the stock, but this does not make the stock investment of loss. The new partnership with Beyonce is one major reason that the stocks of this company will likely turn out to be profitable.
Hence, this is a good stock for investing because a company which could thrive in the crucial time of this coronavirus pandemic has a great potential to do better and bring profits to the investors. When the announcement by Pfizer regarding the coronavirus vaccine brought down the stocks of Peloton, the announcement of a partnership with Beyonce took the stocks high again. This partnership is for a long period and hence, an investment here is seemingly secure owing to this reason.
As and when more and more gyms will start reopening, the stocks will also go up and make this company more promising for investing. A long-term investment suits well in this case for the patient investors. The analysts also expect this company to rise more in the future making it a considerable firm for investing.