Why I Doubled My Peloton (PTON) Holdings Today

Since I initially started my investment in Peloton, the stock has continued to fall.

At the time I bought the stock it had already declined considerably from its 52-week high of $157.93 on February 4, 2021. It hit its current 52-week low of $22.81 on January 28, 2022. Let that sink in. The stock dropped 85% within a year.

Luckily, I didn’t buy the stock at its peak but already after it had dropped considerably down to the low 40s. But since it continued to drop in value, it felt like catching a falling knife.

Now though it looks like the stock got oversold and I’ve decided to dollar-cost average and bring my average cost down to the low 30s. I went ahead and bought the same number of shares I have already been holding and thus doubled my investment in the terms of the number of shares.

The timing was fortunate because the stock is up around 30% after hours based on reports that Amazon and other companies have taken interest in taking over the company.

If this happens, my investment in Peloton will immediately turn green and I’d expect it to increase even further in value. If anything I now regret not adding even more PTON stock to my portfolio.

That said, whether or not Amazon et al come through and acquire the company, the fact that they are interested, assuming the rumors are true, suggests there is a more widespread belief that the stock was oversold and there is value in the future prospects of the company.