- Peloton Interactive (PTON +5.6%) breaks higher a day after announcing that it would expand its apparel business with private label offerings.
- On Wall Street, Bank of America is out with another positive note on PTON on its view the post-earnings weakness provides an entry point. The firm says Peloton stock was oversold due to bike price cut & margin concerns even with subscribers the key stock price driver. Peloton's full-year outlook is called reasonable and BofA thinks PTON management had a good read on bike price elasticity and Tread demand incorporated into guidance, noting lowering upfront pricing is the right long-term strategy.
- Looking ahead, credit card data on Tread/bike sales is seen as a key stock driver in September.
- Read more about Peloton's private label play.