Peloton will temporarily halt production of its bikes and treadmills due to sluggish consumer demand. Shares were down another 23% which makes it 85% from its 52 week high. We have been recommending Peloton – PTON as a short since before its 52 week high. It took some time but ultimately we got this one right. We would understand if short seller investors wanted to cover at this point but we are not convinced the bottom is in. Re-structuring is likely and bankruptcy is not out of the question.
We posted a video on YouTube on November 24, 2020 stating our case that the shares were overvalued.