Why Karen Firestone Is Buying More Peloton Stock
Peloton Interactive Inc (NASDAQ:PTON) has sold-off to a price where it is worth buying, Aureus Asset Management CEO Karen Firestone said Wednesday on CNBC's "Fast Money: Halftime Report."
What Happened: On May 6, Peloton reported quarterly losses of 3 cents per share, which beat the estimate for a loss of 12 cents per share. The interactive fitness product company reported quarterly revenue of $1.13 billion, which beat the estimate of $1.11 billion.
Peloton recently recalled its treadmill products after reports of injuries, including the death of a child related to the product.
The company will be able to overcome the treadmill issue, Firestone said, adding that other fast-growing companies have shown the ability to recover from difficult situations in the past.
Firestone told CNBC she first bought Peloton's stock when it hit $100 and then recently purchased more shares at $80.
Peloton will continue to increase its earnings, she said, adding the current price-to-earnings multiple makes sense.
Related Link: When Will The Peloton Sell-Off End?
PTON Price Action: Peloton traded as high as $171.09 and as low as $38.80 over a 52-week period. At last check Wednesday afternoon, the stock was down 1.82% at $89.35.
(Photo courtesy of Peloton.)
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