Peloton Stock Surges: Here’s Why Investors Are Rushing In

Peloton’s stock just ripped past resistance—here’s what’s fueling the rally.

The Short Squeeze Play

Bets against the connected-fitness giant got crushed as bullish momentum kicked in. No fancy fundamentals—just good old-fashioned market mechanics at work.

Wall Street’s Mood Swing

Analysts flipped from doomster to booster overnight (classic hedge fund whiplash). Suddenly, everyone ‘always believed’ in the comeback narrative.

The Cynical Take

Let’s be real—this is the same stock that got memed to death in 2022. But hey, in a market addicted to hopium, even treadmill makers get their day.

Time for a turnaround

Already boosted by an analyst recommendation upgrade from bankpublished on Friday, Peloton stock got another boost from a top financial media outlet this past Thursday.

Image source: Getty Images.

That morning, Bloomberg reported the company is aiming to launch its most significant set of product upgrades in years. Citing unnamed "people familiar with the matter," the news agency wrote that this could occur as soon as October with the rollout of a new Peloton bide, a treadmill, and an integrated artificial intelligence (AI) platform, among other offerings.

Management also intends to tweak its sales effort. Apparently it will step up sales of used equipment and offer more self-assembly options for its customers.

Bloomberg said a Peloton spokesperson, who it did not name, refused to comment on the article.

Fall from grace

Peloton is one of the poster children for stocks that blasted higher during the pandemic but have since plummeted back to Earth. Its products were ideal for people wanting to get fit but shut in to their homes, and sales soared commensurately. Since then the company hasn't really been able to halt sales declines, although CEO Peter Stern recently promised a turnaround plan WOULD yield results.