Is Peloton (PTON) Finally A Buy in 2022 After Dropping in 2021?

Peloton stock (PTON) declined about 75% in 2021. Let that sink in for a moment.

The stock price decreased even further when JP Morgan downgraded the company at the end of December because they felt web traffic to Peloton’s website had dropped significantly.

Their source for website traffic was cited to be SimilarWeb. There is one problem with this premise. Third party web traffic measurement is not always reliable.

You can install the SimilarWeb Chrome extension and test it on various websites yourself.

Well, in that case, what other options do we have to gauge interest in a brand name?

Another possibility is to check Google Trends and this time the story is different.

It’s true that interest in Peloton fell dramatically throughout most of 2021 but there’s been a reversal in recent months as you can see in the image below.

If the trend is also reflected in actual website traffic and more business for Peloton, this could indicate a positive improvement in the company’s fortunes.

I bought Peloton stock in the low 40s and I am going to hold for the foreseeable future.

There seems to be more likelihood of upside than downside at this level.