Should You Now Sell Your Peloton Interactive (PTON) Stake?

Merion Road Capital, an investment advisor, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, Merion Road Small Cap Fund returned -11.5% compared to 2.1% return for the Russell 2000 Index, and its Long Only Large Cap returned -6.4% compared to -4.9% return for the S&P 500 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Merion Road Capital discussed stocks like Peloton Interactive, Inc. (NASDAQ:PTON) in its Q3 2022 investor letter. Headquartered in New York, New York, Peloton Interactive, Inc. (NASDAQ:PTON) is an interactive fitness platform. On October 13, 2022, Peloton Interactive, Inc. (NASDAQ:PTON) stock closed at $8.71 per share. One-month return of Peloton Interactive, Inc. (NASDAQ:PTON) was -10.57% and its shares lost 89.77% of their value over the last 52 weeks. Peloton Interactive, Inc. (NASDAQ:PTON) has a market capitalization of $2.948 billion.

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.”

Peloton Interactive, Inc. (NASDAQ:PTON) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Peloton Interactive, Inc. (NASDAQ:PTON) at the end of the second quarter which was 44 in the previous quarter.

We discussed Peloton Interactive, Inc. (NASDAQ:PTON) in another article and shared the best fitness stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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