Jim Cramer on Peloton: “They’re a Little Bit Too Hype Oriented for Me”

Peloton Interactive, Inc. (NASDAQ:PTON) is one of the stocks Jim Cramer put under the microscope. A caller inquired about the company’s potential for growth, noting they hold shares purchased at just under $10. Cramer stated:

“I didn’t really care for the report to be honest. I was kind of thinking, now wait a second, wasn’t this something, a quarter that I thought would be breakout? I also think that they’re a little bit too hype oriented for me, so I’m going to say no. And I like subscription businesses, but I’d rather be in a subscription business that is more like say Spotify or a Costco or Amazon.”

A stock market data. Photo by Alesia Kozik on Pexels

Peloton Interactive, Inc. (NASDAQ:PTON) provides connected fitness equipment, including bikes, treadmills, and rowers, along with app-based and membership services. During the lightning round of the June 6 episode, a caller inquired about the stock, and Cramer responded:

“Well, you know, it is a subscription business, and I like subscription businesses. I think that they work, but I don’t think they have the growth. So, therefore, I’m going to say if you want a subscription business, I want you to be in Spotify.”

While we acknowledge the risk and potential of PTON as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PTON and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.