Why Peloton Interactive (PTON) Is Crashing?

We recently published a list of 10 Companies Reflect Market Decline. In this article, we are going to take a look at where Peloton Interactive, Inc. (NASDAQ:PTON) stands against other companies that reflect market decline.

The stock market was lackluster on Thursday, with Wall Street’s main indices ending the day with marginal declines.

The Dow Jones Industrial Average dipped by 0.16 percent, the S&P 500 shed 0.21 percent, and the Nasdaq Composite declined by 0.89 percent.

Ten companies mirrored the decline on Wall Street over a series of catalysts including uncertain government policies and disappointing earnings results.

Let’s take a closer look at the worst performers and explore the factors behind their declines.

To come up with Thursday’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)

Shares of Peloton Interactive, Inc. (NASDAQ:PTON) decreased by 5.35 percent on Thursday to $8.49 apiece as investor sentiment was weighed down by the lack of catalysts to spark buying appetite.

Investors also appeared to be on the sidelines waiting for fresh updates from the company after the installation of Peter Stern as its new chief executive officer effective last January 1, replacing Barry McCarthy who stepped down from his position in May last year.

According to Jay Hoag, chairperson of the Peloton Board: “Peter is a seasoned strategist with a track record of driving sustainable growth through innovation, and we have every confidence in his ability to lead Peloton Interactive (NASDAQ:PTON) during this important time. He brings meaningful expertise in scaling differentiated technology-oriented platforms and has a deep understanding of the health and wellness sector – making him uniquely suited to serve as Peloton’s next CEO.”

Overall, PTON ranks 7th on our list of companies that reflect market decline. 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 time frame. 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.

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