5 Best Depressed Stocks To Buy Now

4. Peloton Interactive, Inc. (NASDAQ:PTON)

Number of Hedge Fund Holders: 46

Amid changing macroeconomic situation and rising inflation Peloton Interactive, Inc. (NASDAQ:PTON) shares are under pressure as analysts believe the company’s business could keep taking a hit as discretionary spending falls. Macquarie recently downgraded Peloton Interactive, Inc. (NASDAQ:PTON) to a Neutral rating from Outperform. Macquarie’s analyst Paul Golding however said a turnaround could still happen but too much volatility around the company has made it difficult to project.

The analyst cut his price target on Peloton Interactive, Inc. (NASDAQ:PTON) to $7 from $10.

Here is what Merion Road Capital specifically said about Peloton Interactive, Inc. (NASDAQ:PTON) in its Q3 2022 investor letter:

“Peloton Interactive, Inc. (NASDAQ:PTON) is quite a different story. You may recall from my Q1 letter that I initiated a position in the stock given the potential for a new CEO to leverage the company’s passionate and engaged userbase. The investment had meaningful upside potential (multiples of the then trading price), but also presented real downside risk; as such, I kept our exposure to just a few percentage points of the portfolio. Fast forward six months and underlying trends like churn, engagement, and new users weakened dramatically. I sold our shares as the likelihood for the company to achieve financial success has become increasingly remote.”