Why Peloton Interactive, Inc. (PTON) Surged on Monday

We recently published an article titled Why Traders Flocked to These 10 Stocks on Monday. In this article, we are going to take a look at where Peloton Interactive, Inc. (NASDAQ:PTON) stands against the other stocks.

The stock market kicked off the trading week on a mixed note, with two major indices ending in the green, as investors continued to digest more corporate earnings results.

Among the bellwether indices, only the Nasdaq ended in the red, dropping 0.10 percent. In contrast, the Dow Jones grew by 0.28 percent and the S&P 500 inched up by 0.06 percent.

Meanwhile, 10 companies mirrored a broader market optimism, as investors snapped up shares ahead of their first-quarter earnings performance in the next few days.

To come up with the list, we considered only the companies with a $2-billion market capitalization and $5-million trading volume.

A group of people in a fitness class with connected fitness products in a studio or gym.

Peloton Interactive, Inc. (NASDAQ:PTON)

Peloton Interactive, Inc. (NASDAQ:PTON) grew its share price for a fifth straight day on Monday, adding 4.93 percent to end at $6.6 apiece as investors snapped up shares ahead of the release of its earnings performance next week while digesting the recent rating upgrade from an investment firm.

According to Peloton Interactive, Inc. (NASDAQ:PTON), it will release its key financial and operational highlights before the market opens on Thursday, May 8, 2025.

In other news, Peloton Interactive, Inc. (NASDAQ:PTON) has earned a Buy rating from Truist Securities, marking an upgrade from the Hold rating it was assigned previously.

Truist also gave Peloton Interactive, Inc. (NASDAQ:PTON) a price target of $11, saying that the upgrade was based on its improving fundamentals, cleaner balance sheet, and a clearer path to sustained profitability under new leadership, and that its efforts to reduce operating expenses and stabilize cash flow are starting to bear fruit.

Overall PTON ranks 8th on our list of the best performing stocks on Monday. While we acknowledge the potential of PTON as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PTON but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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