What happened

Peloton Interactive (NASDAQ:PTON), the largest interactive fitness platform in the world, jumped as much as 11% higher Tuesday after the company hit a subscriber milestone.

So what

While much of the economy and activity as we know it has slowed to a near standstill, Peloton has thrived as people stuck at home are looking for ways to exercise and stay active. Stay-at-home orders helped drive Peloton to a subscriber milestone: The company announced it surpassed 1 million connected fitness subscribers. In fact, while many stocks have plunged two and three times as far as the S&P 500, Peloton is unique in terms of its performance over the past three months.

PTON Chart

PTON data by YCharts.

Investors had an idea the company was doing well, as its third-quarter report on May 6 highlighted a 66% surge in revenue compared to the prior year and a 92% increase in subscription revenue. At the time, connected fitness subscribers had spiked 94% to more than 886,100, and it didn't take long for that metric to surpass 1 million.

Stationary bike

Image source: Getty Images.

Now what

There's plenty of reason to believe that the tragic scenario of COVID-19 could help fuel Peloton in the near term, and Wall Street seems to agree with 18 analysts rating it as a buy compared to only one hold and one sell.

Not everyone is buying into the Peloton hype, however. Citron Research, known primarily for shorting stocks, tweeted: "This is retail mania you can love the product but stock has peddled its way to stupidity."

Peloton may indeed be richly valued, depending on what metrics you prefer to use. But if you believe the company has a long-term growth story, then the price you pay shouldn't be a primary concern.