Peloton Stock Skyrockets: Here’s the Fuel Behind the Frenzy

Peloton shares just ripped through resistance like a HIIT sprint—but what's pumping the momentum?

Short squeeze or sustainable surge?

Retail traders piled in after whispers of a potential Amazon buyout (denied, naturally). Classic meme-stock volatility meets pandemic darling nostalgia.

Bulls see dollar signs in the pain trade

Analysts note 30% short interest got steamrolled—though anyone betting against cult stocks post-GME deserves their margin call. The 'connected fitness' narrative gets a VR facelift with rumored Apple Fitness+ integration.

Wall Street's latest pump-and-pedal play? Probably. But today's gainers don't ask questions while the music's playing.

Image source: Getty Images.

Positive analyst coverage helped Peloton stock soar today

Yesterday evening, Goldman Sachs published new coverage on Peloton -- and the note had a big impact on the stock in today's trading. With its new coverage, Goldman raised its rating on Peloton stock from neutral to buy. The investment firm also increased its one-year price target on Peloton stock from $7 per share to $11.50 per share. Even after a big gain for Peloton's valuation today, Goldman's new price target on the stock still suggests additional upside of roughly 47%.

What's next for Peloton?

Peloton recently published results for the fourth quarter of its last fiscal year, which ended June 30, and the company's cost-cutting initiatives pushed the business to an unexpected profit in the period. While the company's sales still declined by roughly 6% year over year in the quarter, cost-discipline led to margins that were significantly better than anticipated.

Wall Street had expected the business to record a loss of $0.05 per share in fiscal Q4, but Peloton actually recorded a profit of $0.05 per share in the period -- and its margin improvement appears to be sustainable in the NEAR term. Management also anticipates that the business's sales decline will slow in the current fiscal year. There are some indications that efforts to grow sales among enterprise customers are bearing fruit.