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Peloton’s stock ($PTON) approaching $50B market cap as it hits all-time high

Update 1/13/20: Coming off the CNBC report of increased shipments coming into the US, Peloton ($PTON) is once against approaching a $50 billion market cap as its stock has crossed over $167 once again hits an all-time high.

Peloton acquires Precor

Coming off the news that it was acquiring equipment manufacturer Precor, Peloton’s stock continues an upward climb as it reached a new high during trading earlier today.

Opening the day at $159.20, it reached $166.23 before settling back down to $161.15 as of this post. Peloton’s stock has seen tremendous growth in 2020 as gyms and fitness centers have been either closed or at reduced capacity since the COVID-19 pandemic hit in March. Peloton opened the year at $30.60 and was as low as $19.72 in March before starting an upward trajectory through the spring. Peloton’s sales have surged as people have opted to stay at home despite some gyms reopening.

Even as competitors have released lower-cost products, demand for Peloton’s products has remained strong. So strong, in fact, that the long wait times are now seen as an opportunity for competitors to snatch up sales ahead of Christmas. Companies like Echelon have partnered with national retailers to distribute their products, while Peloton has relied on a direct-to-consumer approach.

In 2020, Peloton released a new Bike+ product, announced a lower-cost treadmill known as Tread, and renamed the current treadmill to Tread+ to match Peloton’s better/best product strategy.

As Peloton looks ahead to 2021, its app product known as Peloton Digital has new competition from Apple with its Fitness+ product that’s also included in Apple’s new Apple One bundles. Investors seem unfazed by Apple’s product as it doesn’t directly compete with Peloton’s hardware. Apple doesn’t integrate with specific hardware but has a list of recommendations for purchasing new products.

What’s next for Peloton?

As Peloton ($PTON) looks ahead to 2021 and beyond, demand for their products doesn’t seem to be slowing down anytime soon. Even as gyms and fitness centers reopen completely, many customers will opt to stay home for their workouts for convenience rather than safety. If they can solve their logistics and manufacturing challenges, the stock will be a great choice for years to come.

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