Shares of exercise equipment and media company Peloton Interactive (NASDAQ:PTON) jumped over 17% in Thursday’s afternoon trading session. The upward trend comes on the back of the company’s Q1 FY2024 report, where it beat revenue expectations but missed on earnings and projected a soft outlook.
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So far, it appears investors are unfazed about the weaker-than-expected Q2 FY2024 guidance and earnings miss. Indeed, the company predicts revenue to slow down as inflationary-weary consumers hold back on their spending.
As a result, the New York-based company expects Q2 revenue between $715 million and $750 million. This revenue projection falls below analysts’ estimate of $763.3 million. In addition, the company said subscriptions could fall 21% year-over-year to between 2.97 million and 2.98 million, also lower than analysts’ expectations of 3.03 million.
Is Peloton a Buy, Sell, or Hold?
Despite the recent price surge, Peloton shares have lost about 32% of their value this year as fitness equipment demand and subscribers slump.
As a result, Wall Street analysts have a Hold consensus rating on the stock based on four Buys, seven Holds, and two Sells. Furthermore, the average PTON price target of $7.62 implies a 38.80% upside potential from current levels.
