5 Best Tech Growth Stocks to Buy Right Now

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

P/E Ratio: 157

Peloton is one of the unique firms out there that allows its users to experience a community-based experience while sitting in the luxury of their homes. It offers exercise bicycles and treadmills which are connected to each other and allow video calls. Peloton also offers exercise classes and has a software application that lets users stream their classes.

Peloton’s share price at the end of September 27, 2018, when its shares started trading was $25.24, and its closing price on Thursday, August 26, 2021, was $114 making for 352% growth in three years. Its P/E ratio is 157.

Artisan Mid Cap Fund, in its Q1 2021 investor letter, mentioned Peloton Interactive, Inc. (NASDAQ: PTON). Here is what the fund said:

“Among our bottom Q1 contributors was Peloton Interactive. Peloton’s growth has accelerated throughout the pandemic as consumers replace in-person gym workouts with the company’s connected bikes and online classes. This has increased brand awareness, decreased the need for advertising spending and quickly proved the company’s high-margin, recurring revenue business model. These benefits were on clear display in Peloton’s Q4 results, which showed subscription growth trends remain robust entering 2021. However, this demand, combined with global supply chain bottlenecks, is resulting in bike shipment delays and has led the company to spend $100 million in the coming months to expedite deliveries. While this will pressure near-term profits, we expect trends to improve later this year as the company’s investments in manufacturing capacity bear fruit and as it rolls out a new, affordable treadmill. We trimmed our position early in the quarter based on valuation concerns, but the stock’s subsequent selloff brought the valuation back into an attractive range, in our view.”