Peloton Shares Continue To Climb: What's Going On?

Shares of Peloton Interactive Inc (NASDAQ:PTON) traded higher on Monday on continued momentum following the company’s fourth-quarter earnings report last week. Here’s what investors need to know.

What To Know: Peloton shares are up about 18.5% over the past five trading sessions. The fitness equipment maker last week announced quarterly results that surpassed analyst expectations, showcasing progress in its ongoing turnaround strategy. Adding to the positive momentum, Goldman Sachs upgraded its rating on the stock from Neutral to Buy, increasing its price target from $7 to $11.50.

For the fourth quarter of fiscal 2025, Peloton reported total revenue of $606.9 million, representing a 6% decrease year-over-year. The company also saw its Ending Paid Connected Fitness Subscriptions decline by 6% to 2.80 million.

However, Peloton showed considerable improvement in profitability, posting GAAP net income of $21.6 million, compared to a loss in the prior year. Total gross margin expanded by 560 basis points to 54.1%, and adjusted EBITDA grew 99% year-over-year to $140 million.

Looking forward, the company announced a new restructuring plan intended to generate at least $100 million in run-rate savings by the end of 2026. For fiscal 2026, Peloton guided for total revenue of $2.4 billion to $2.5 billion and adjusted EBITDA in the range of $400 million to $450 million.

The market’s reaction suggests investors are encouraged by the substantial cost-cutting measures and improved profitability, despite the continued decline in revenue and subscribers.

Following the company’s quarterly results, Goldman Sachs upgraded Peloton to Buy and Telsey Advisory Group maintained a Market Perform rating.

Benzinga Edge Rankings: According to Benzinga Edge stock rankings, which score stocks on four critical factors, Peloton presents a mixed profile.

The stock boasts an exceptionally strong Momentum score of 94.12, indicating positive recent price action. However, it shows weakness in other areas, with a low Growth score of 18.60 and a low Value score of 12.01.

This data suggests that while the stock has strong upward momentum, its underlying growth and value metrics are considered weak.

PTON Price Action: According to data from Benzinga Pro, Peloton shares closed Monday up 5.23% at $8.25. The stock has a 52-week high of $10.90 and a 52-week low of $2.83.

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How To Buy PTON Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Peloton’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

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