Billionaire David Einhorn’s 10 Stock Picks with Huge Upside Potential

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

Greenlight Capital’s Q4 Stake: $91.5 million

Analyst Upside as of April 30: 42.57%

Number of Hedge Fund Holders: 49

Peloton Interactive, Inc. (NASDAQ:PTON) is a multinational fitness technology company that provides internet-connected workout equipment, including treadmills and rowers, for streaming live and on-demand fitness classes via a subscription service. The company also offers a digital app allowing paid access to a variety of training classes.

Truist Securities raised Peloton Interactive, Inc. (NASDAQ:PTON) to Buy from Hold on April 28, citing improved fundamentals, a cleaner balance sheet, and a more straightforward path to long-term profitability under new leadership. Three years after downgrading the stock, Truist said Peloton’s efforts to cut operational costs and stabilize cash flow are starting to pay off. Truist emphasized Peloton’s goal of returning to revenue growth in fiscal 2026, estimating a 1.9% year-over-year improvement following a projected 9% decrease in fiscal 2025.

Peloton Interactive, Inc. (NASDAQ:PTON) reported solid financial results in the second quarter of 2025, with adjusted EBITDA reaching $58 million, representing a $140 million year-over-year increase. The company raked in a double-digit Connected Fitness Products gross margin of 12.9%, owing to a favorable premium product mix and strict discount alignment.

Greenlight Capital stated the following regarding Peloton Interactive, Inc. (NASDAQ:PTON) in its Q4 2024 investor letter:

“We had some good successes, as well. Peloton Interactive, Inc. (NASDAQ:PTON) and Tenet Healthcare (THC), discussed below, were also large winners during 2024.

We presented our PTON thesis at the Robin Hood Investors Conference in October and previously sent you copies of the presentation. Yes, David rode for 20 minutes while presenting the thesis.5 PTON was a popular stock during the COVID era as demand for at-home fitness products and services skyrocketed. During this time, the company invested heavily for growth without any regard for profitability or expense management. After multiple missteps and subsequent management changes, the stock fell 98% from its peak price in early 2021. Throughout this time, PTON has maintained a loyal and engaged customer base through its subscription-based business model.

Recently, the company has committed itself to dramatically cutting costs. Should PTON be successful in right-sizing its cost structure, we expect significant EBITDA generation, and when applying a peer multiple to those profits, we believe the stock has significant upside. We established our position at an average price of $4.07 per share. PTON ended the year at $8.70.”