Peloton Interactive (PTON) shares are slipping on Aug. 6 even though the connected fitness firm reported its first annual profit ($63 million) on $2.446 billion in revenue.
While PTON’s revenue came in virtually flat in Q4 on a year-over-year basis, its earnings per share (EPS) more than doubled to $0.13, beating the consensus estimate set at $0.12 per share.
Despite significant gains in recent months, Peloton stock remains a disappointing investment for 2026, currently down about 10% versus the start of this year.
What’s Driving Peloton Stock Lower on Thursday?
Investors are bailing on PTON shares primarily because of elevated churn; the company ended its Q4 with 2.553 million paid connected fitness subscribers, down 247,000 or about 8.8% versus last year.
This made management offer muted guidance for the full year. Peloton now expects its FY27 sales to fall between $2.3 billion and $2.4 billion, trailing Wall Street’s expectations of $2.44 billion.
In a push to lower costs, Peloton laid off about 11% of its workforce in January, but its outlook is making investors realize that corporate overhaul alone can’t substitute for active subscriber growth.
Where Options Pricing Suggests PTON Shares Are Headed
Despite aforementioned concerns, options traders remain convinced that Peloton shares are largely undervalued at current levels.
According to Barchart, the put-to-call ratio on contracts expiring mid-October sits at 0.03x currently, indicating a very strong bullish skew.
And the upper price on those contracts is set at $6.46, signaling potential for a nearly 20% rally within the next three months.
Crucially, Barchart seems to agree with the derivatives market as well. Its “32% BUY” opinion on Peloton Interactive suggests technical momentum also favors recovery in the company’s share price in the months ahead.
What’s the Consensus Rating on Peloton Interactive
For high-risk investors, buying the dip in PTON stock may be an attractive proposition given Wall Street analysts haven’t thrown in the towel on the connected fitness firm either.
According to Barchart, the consensus rating on Peloton Interactive remains at “Moderate Buy,” with the mean price target of $8.41 indicating potential upside of more than 60% over the next 12 months.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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