Why Peloton Interactive Inc. (PTON) Stock Plunged On Monday

We recently published a list of 10 Stocks Defy Monday’s Market Optimism. In this article, we are going to take a look at where Peloton Interactive Inc. (NASDAQ:PTON) stands against other stocks that defy Monday’s market optimism.

US shares kicked off Monday’s trading with a bounceback from last week’s pessimistic sentiment, as economies took a pause from their tariff war.

Additionally, investors breathed a sigh of relief on the February retail sales report which came in not as bad as feared.

According to the latest figures, retail sales rose 0.2 percent, albeit below the 0.6 percent as expected by analysts. Excluding autos, sales are up by 0.3 percent, in line with economists’ expectations.

Following the news, the Dow Jones clocked in a 0.85-percent gain, followed by the S&P 500 with 0.64 percent, and the tech-heavy Nasdaq with 0.31 percent.

Meanwhile, 10 companies bucked a wider optimistic sentiment over a flurry of negative corporate news that weighed down on their shares. In this article, we have listed Monday’s 10 worst performers and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume.

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

Peloton Interactive Inc. (NASDAQ:PTON)

Peloton Interactive dropped its share prices by 6.52 percent on Monday to end at $6.59 apiece as investors resorted to profit-taking amid the lack of fresh catalyst to sustain Friday momentum.

Last week, PTON rallied by 16.6 percent after Canaccord raised its outlook for PTON to “buy” from “hold” previously, citing the company’s progress in rebounding to profitability and its strong position in the fitness industry. It also gave the company a $10 price target, representing a 42-percent upside from its latest stock price.

According to Canaccord, PTON is well-positioned for future growth, supported by a loyal member base of 6 million.

For the full year 2025, Canaccord expects PTON to achieve between $300 million and $350 million in adjusted EBITDA, a significant jump from the $3.5 million in the full year 2024.

Additionally, it sees revenues to inflect next year with new initiatives to be supported by subscriber growth by 2027.

Overall, PTON ranks 3rd on our list of stocks that defy Monday’s market optimism. While we acknowledge the potential of PTON as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as PTON but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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