Based on recent data and market performance, PTON stock shows mixed signals. The company's improved profitability metrics and raised FY25 guidance suggest positive momentum, but subscriber growth remains a concern until late 2025.
The stock is currently trading at $8.37, showing signs of stabilization after recent earnings. Under new CEO Peter Stern, Peloton has demonstrated strong cost discipline with adjusted EBITDA guidance raised by $60M to $300M-$350M. However, hardware sales continue to decline while subscription revenue remains the primary growth driver.
Recent analyst actions reflect cautious optimism - BofA raised their price target to $11.50, while most analysts maintain a Hold rating. The average price target suggests a potential upside of around 19% from current levels.
Given the technical indicators showing RSI at 50.18 (neutral territory) and MACD at -0.26 (slightly bearish), combined with fundamental improvements but ongoing growth challenges, selling PTON at current levels would be the more prudent action. Consider waiting for clearer signs of subscriber growth recovery and sustained profitability before establishing new long positions.