10 Best US Stocks Under $10 to Buy Right Now

2. Peloton Interactive Inc. (NASDAQ:PTON)

Share Price as of March 24: $6.96

Number of Hedge Fund Holders: 49

Peloton Interactive Inc. (NASDAQ:PTON) provides an integrated fitness platform that offers connected fitness products like the Peloton Bike, Tread, and Row. These are marketed through e-commerce, showrooms, and retail partnerships. It focuses on delivering interactive and immersive fitness experiences to its customers.

The company’s Subscription segment drives its recurring revenue and member retention. It generated $421 million in FQ2 2025, which was 62% of total revenue. The company ended FQ2 with 2.88 million paid Connected Fitness subscriptions. This exceeded guidance by 19,000 subscriptions. The company’s monthly subscription churn was 1.4%, which was down 0.5% sequentially, due to fewer cancellations, pauses, and more reactivations. Members using multiple workout types had 60% lower churn.

Peloton Interactive Inc. (NASDAQ:PTON) added 220,000 users to its Strength+ app and over 300,000 to its 10K training program, which helped it expand its subscription offerings. The company prioritizes subscription growth and projects 2.75 to 2.79 million subscribers in 2025. It’s aiming for a 2x to 3x customer lifetime value (LTV) to acquisition cost (CAC) ratio. With a 50% gross margin forecast and 4.3/5 member satisfaction, subscriptions are a key strength for the company.

Greenlight Capital sees Peloton Interactive Inc. (NASDAQ:PTON) as a successful turnaround story with significant upside potential due to its cost-cutting measures and loyal customer base. It stated the following regarding the company in its Q4 2024 investor letter:

“We had some good successes, as well. Peloton Interactive, Inc. (NASDAQ:PTON) and Tenet Healthcare (THC), discussed below, were also large winners during 2024.

We presented our PTON thesis at the Robin Hood Investors Conference in October and previously sent you copies of the presentation. Yes, David rode for 20 minutes while presenting the thesis.5 PTON was a popular stock during the COVID era as demand for at-home fitness products and services skyrocketed. During this time, the company invested heavily for growth without any regard for profitability or expense management. After multiple missteps and subsequent management changes, the stock fell 98% from its peak price in early 2021. Throughout this time, PTON has maintained a loyal and engaged customer base through its subscription-based business model.

Recently, the company has committed itself to dramatically cutting costs. Should PTON be successful in right-sizing its cost structure, we expect significant EBITDA generation, and when applying a peer multiple to those profits, we believe the stock has significant upside. We established our position at an average price of $4.07 per share. PTON ended the year at $8.70.”