$PTON consolidating - will go up soonPTON is bullish will go $110 by October mid as the overall trend is bullish both in daily charts and hourly.
2ON trade ideas
PTON:NASDAQ - PELOTON INTERACTIVE - 300% run since March lowsPeloton is another business benefiting from the stay-at-home economy with people increasingly looking for home-gym exercise type solutions. RSI looking good, but getting close to earnings which are probably likely to be up - but are they up as much as shareholders expect. Watch up for a pullback to retest that resistance area, but a stock worth keeping an eye on the longer the stay home environment runs.
$PTON Peloton reversal trade
PTON has acted very strong amongst the market turmoil and the increase in COVID cases and lockdowns worldwide
underlines the potential ahead for the company.
Today we could see a nice reversal trade opportunity.
Targets as per Gann channel
(P)TON of potentialOn one hand, there's no way I'm buying PTON this close to its highs and this far from POC resistance levels.
On the other, the company held strong against news that AMZN and AAPL are encroaching in its space, has been nimble at expanding into other workout areas, and has money flowing back into the stock. Still wouldn't buy right now, but if it pulls back or breaks out over recent highs, I'm in.
PTONI WOULD GO LONG OVER 100. IF PTON FAILS AT 100 AGAIN, IT CAN DROP BACK DOWN TO 92, 88.
TRADE IDEA: 105C 10/2
PTON currently in wave 5, due for another correction soon?Am new to Elliotwave analysis but this is my attempt.
Head and Shoulders on $PTONGet in on this short opportunity for $PTON on the final right shoulder. This could be a great ride down.
$PTON H&S Target $79 but need confirmationCurrently $PTON forming right shoulder and if goes below $87 that will confirm the pattern and drop to $79.
+$1250 with 1/1 wins in $PTONHi Guys,
Slow and careful today. $PTON was not giving it up until 10.21am.
Got it good,
Enda
Rising wedge forming on the hourly Short term we stay in the 100+ area. Long term we see a downtrend in pricee
PTON- The StratBroke yesterdays high(inside day, 1) premarket. Got on entry on the 5 min.
Looking for another entry
long positiondespite the drop in the middle of the day , the PTON kept going up respecting the trend line
+$3010 today with 2/3 wins Hi Guys,
Won in WKHS & $PTON which were on the watch list and lost in $ORCL which was not!
+$3010 for the day,
Enjoy,
Enda
Short below $86 long over $90My PT is $80. If PTON breaks below $86 then it will fall to $80. I'm not going to long unless it can break back over $90
Peloton (PTON): The Apple and Netflix of the Fitness IndustryIf you like this analysis, please make sure to like the post, and follow for more quality content!
I would also appreciate it if you could leave a comment below with some original insight.
What is Peloton Interactive (PTON)?
- Peloton is a home fitness company that offers fitness products such as an indoor cycle, and a treadmill, as well as live workout content
- Peloton is similar to Apple (AAPL) in that it promotes the establishment of a hardware-based ecosystem
- It’s also similar to Netflix (NFLX) in that it offers various fitness content in subscription form
Financials
- They initially anticipated $1.72 billion in revenue for 2020, which has been modified to $1.74 billion due to their explosive growth
- This means that PTON demonstrates a 89% year-over-year growth in revenue
- Out of their total revenue, 79% consists of sales of connected fitness products, and 20% from their subscription service
- PTON is one of the few stocks that has benefited from the pandemic.
- With an increasing number of people staying indoors, wanting to exercise, demand for Peloton’s products and services skyrocketed.
- Due to the Coronavirus (COVID-19), they have managed to be profitable for the fourth quarter with an Earnings per Share (EPS) at 27 cents.
- While they are not extremely profitable yet, as PTON is a growth stock, the fact that they have $500 million in cash proves that they will be financially stable for the short term.
Business Analysis
- The fitness machines sold by Peloton are not normal indoor cycles and treadmills with screens attached
- These fitness machines, which cost $2,245 and $4,295, apply cutting-edge technology that allow users to meticulously control the angle and resistance.
- Moreover, these products provide accurate data on the user’s athletic performance.
- The hardware provided by Peloton Interactive are optimized for the contents they provide.
- PTON’s instructors are 30 of the most famous fitness influencers on social media.
- As such, they could expand their streams of revenue to paid advertisements, and ecommerce opportunities, diversifying the business.
- They offer two subscription plans:
- A ‘Connected Fitness’ plan based on the hardware they offer
- And a digital membership that is offered separately
- Connected Fitness allows users to participate in live cycling sessions, and receive immediate feedback from the instructor
- The number of users subscribing to Connected Fitness is skyrocketing, with a 94% increase in users compared to that of the last quarter
- The number of subscribers for Connected Fitness surpassed 1 million in 2020 May
- The digital membership subscription does not require a Peloton hardware, and offers various types of content besides running and cycling, such as yoga, meditation, and boot camps.
- Their customer churn rate remains extremely low at 0.65% every quarter, while the number of users continue to grow every quarter
Technical Analysis
- We can see that prices have been in a phase of accumulation for a long time since later 2019
- As prices traded within a descending parallel channel, we saw a sharp breakdown caused by the market drop, which was triggered by the Corona Virus (COVID-19)
- Unlike other companies that were severely affected by the virus, the pandemic was an opportunity for Peloton to grow.
- As a result, we saw prices break through the $40 resistance zone, and rally in a parabolic trend
- Along the way, it has undergone a phase of re-accumulation, before reaching its all-time high at $91.17
- Currently, we have seen prices cool off, bouncing at $79.34 where the 0.236 Fibonacci support and parallel channel trend line support converge
- The 20 Simple Moving Average (SMA) is also a good indicator of PTON's bullish trend, as well as strong support.
- Based on fundamentals, unless we see a corrective confirmation below $80, we could anticipate new all-time highs for PTON.
Conclusion
Peloton is on its way to completing a hierarchical process of 'hardware-software-content-community' funneling users into their ecosystem. This ecosystem that Peloton is designing has been attempted by many, but successfully done by only a few. With the development of each elements and growth as a whole, we could expect a huge augmentation in the barrier to entry.
One thing to note about growth stocks such as PTON is that the essence of the business is rooted on tech. To say Peloton Interactive (PTON) is another fitness-related company like Fitbit (FIT) is to compare Amazon (AMZN) to bookstores and Tesla Motors (TSLA) to automotive companies.
Short PTONStay at home stock with a massive valuation, WHILE gyms are re-opening up again. COVID-19 may have peaked revenues very quickly in the short-term, but now the scope is shaping up for a bleed in growth for revenues in my opinion. This is mainly a technical set-up due to the wide ranges the stock trades in.
+$2855 on 2/2 wins in $PTON & $KODKHi Guys,
2 picture perfect moves in $KODK and $PTON today.
Enjoy,
Enda
What is the path ahead for Peloton?Peloton Interactive, has been in a strong “Go” trend, one that perhaps we should have all seen coming at the onset of global lock down. After rallying over 250% since the “Go” flag on April 8th we are seeing a pullback from the most recent high.
The GoNoGo Trend has painted a couple of paler aqua bars indicating slight weakness in the “Go” trend and this price action has caused the GoNoGo Oscillator to fall to the zero line. There is enthusiasm in general in this stock as we have seen heavy volume as price has run up to recent highs. We will look to see if the Oscillator can hold the zero line and find support there. If it bounces off zero we will see that as a resurgence in the current “Go” trend.
PTON Witching Hour Week Swing TradesSet up for a head and shoulders pattern. Large volatility channel. There is potential to make a higher high and continue the ascending triangle through the minor and major trend. Potential make some good swings.
The Distribution has started for Peloton stocks“Good performance ... Earnings are higher than expected .... the number of subscribers has doubled…. the company has benefited from the coronavirus ... it will hit 100 soon ... blah blah blah blah blah blah “
In recent days, we have seen an increase in activity on the Peloton Interactive PTON stock market. This activity is primarily due to the profits, which the company read about on September 10th. There is a growing uptrend in the background, and emotionally, ordinary investors from the public are looking to enter into longs.
But from my point of view, it would be a rash decision, because we see signals of weakness on the chart. Black arrows point to supply bars (price accelerated from top to bottom on rising volumes). Professional traders use market buzz to distribute the maximum number of shares they buy far below $ 40 per share. And now they are recording a doubling of profits. And they closing longs around a top that is just beginning to form.
What's next? I do not share the general optimism. While I support fitness and a healthy lifestyle, I also support informed decisions when buying stocks, so I highly expect a slowdown in growth. And the share price may decline until the end of 2020.
