5 Best All-Time Low Stocks To Buy Now

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1. Peloton Interactive, Inc. (NASDAQ:PTON)

Number of Hedge Fund Holders: 45

Peloton Interactive, Inc. (NASDAQ:PTON) touched its all-time low back in May and hasn’t seen any lift in the stock price since as it’s trading at around $9 as of January 11. Despite its deep-rooted problems, some analysts believe Peloton Interactive, Inc. (NASDAQ:PTON) can rebound as most of its revenue is now coming from subscriptions. Subscriptions account for 70% of gross margins, with low churn rates. Some Peloton bulls also believe that Peloton Interactive, Inc. (NASDAQ:PTON) has a strong product base and is set to profit in the future as Peloton products have now become a status symbol. In the first quarter, Peloton Interactive, Inc. (NASDAQ:PTON) posted a 36% y/y growth rate in subscription revenue to $412.3 million. Subscriptions accounted for about 67% of the total revenue of the company in the period.

Hedge funds also increased their bets on Peloton Interactive, Inc. (NASDAQ:PTON). As of the end of the third quarter, 45 hedge funds tracked by Insider Monkey reported having stakes in Peloton, compared to 39 funds in the previous quarter.

Here is what Merion Road Capital specifically said about Peloton Interactive, Inc. (NASDAQ:PTON) in its Q3 2022 investor letter:

Peloton Interactive, Inc. (NASDAQ:PTON) is quite a different story. You may recall from my Q1 letter that I initiated a position in the stock given the potential for a new CEO to leverage the company’s passionate and engaged userbase. The investment had meaningful upside potential (multiples of the then trading price), but also presented real downside risk; as such, I kept our exposure to just a few percentage points of the portfolio. Fast forward six months and underlying trends like churn, engagement, and new users weakened dramatically. I sold our shares as the likelihood for the company to achieve financial success has become increasingly remote.”

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