Market Slump Drags Down Share Prices of Peloton Interactive Inc. (PTON)

We recently published an article titled Market Slump Drags Down Share Prices of These 15 Companies. In this article, we are going to take a look at where Peloton Interactive Inc. (NASDAQ:PTON) stands against the other stocks.

Wall Street’s main indices ended this week’s trading on a bloodbath following an overall market selloff as investors shifted their capital into assets offering higher returns.

This article will delve into the factors behind the downturn and explore why each company was particularly affected.

To come up with Friday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A group of people in a fitness class with connected fitness products in a studio or gym.

Peloton Interactive Inc. (NASDAQ:PTON)

Fitness technology company Peloton Interactive saw an 8.57-percent decline in its share price on Friday to finish at $9.39 apiece as investors resorted to profit-taking following Thursday’s gains.

In addition, analysts blamed the overall market downturn as having weighed down on its shares, while investors remained in a wait-and-see mode after the company nearly swung to profitability in its recent earnings report, having narrowed its net loss by 99.44 percent.

Earlier this year, Peloton earned an Altman Z-Score of -1.56, indicating that it is in Distress Zones and could face the probability of bankruptcy over the next two years.

A score of 3 or more shows that the company is performing fairly well.

Overall PTON ranks 5th on our list of the stocks that were recently dragged down by market slump. While we acknowledge the potential of PTON as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PTON but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.