Peloton shares drop due to the pessimistic report of Andrew Left
The shares of Peloton have seen a downhill slump yet again on this Tuesday and this time it has been due to the research report which has come in the wake of a blowback on social media from a Christmas ad that has been mocked widely.
Andrew Left of Citron Research is known on the Wall Street targeting the companies that he thinks have business models that are flawed and says that placing of bets on their stocks would mean falling has said in the report that the investors have put themselves in frenzy about Peloton. He further predicts that the investors are going to soon get tired of the exercise bike and the producer of workout videos which can be streamed.
Left believes that the shares of the company are going to see a drop of $5 by the end of 2020 and that is going to be a drop of 86% from the point where it had stood when the trade closed on Monday.
Peloton had gone public in the month of September at price per share of $29. The report of Left which had come out on Tuesday had appeared to knock the stocks of Peloton down by 7% or $2.45 at $32.32.
The company has a market cap worth $9.2 billion still however left who is pessimistic has said that the current investors in Peloton may lose an amount of as much as $8 billion in the year 2020.
In the report Left has said that Peloton has similarities with GoPro which is a company that has come in hot but gradually fizzled upon facing competition from other such companies in the industry.