Down 22%, Should You Buy the Dip on Peloton?

Company Overview - Peloton sells exercise equipment and subscriptions to fitness classes, gaining popularity during the pandemic [3] - The company's fiscal 2020 sales were $915 million, which quadrupled to over $4 billion by 2022 [4] Financial Performance - Recently reported second quarter saw paid fitness subscriptions fall 7% year over year to under 2.7 million [5] - Revenue dropped 3% compared to the previous year, although operating loss narrowed from $45.9 million to $14.3 million [6] Market Position and Valuation - Peloton's stock trades at a price-to-sales (P/S) ratio of 0.7, significantly lower than the S&P 500's P/S ratio of 3.4 [8] - Despite the low valuation, the company faces significant long-term competition challenges, making the stock potentially a value trap [8][9]