What happened

Shares of exercise bike-maker Peloton Interactive (NASDAQ:PTON) popped nearly 10% in early trading Friday and is hanging on to the majority of those gains in midday trading. As of 1:45 p.m. EDT, Peloton stock remains up a good 8.9%.

So what

Lacking any other news to explain the stock's move, it would appear that investors are reacting (positively) to an SEC filing just out today, which shows that hedge fund Tiger Global Management has taken a 4.15 million-share stake in Peloton Interactive.

As TheFly.com relates, Tiger Global paid $110.3 million to acquire the shares in the first quarter -- 4.15 million shares works out to just under a 1.5% stake in the company, and is worth more than $186 million at today's prices. In other words, in a matter of months, Tiger Global's investment has already charged 69% higher.

Leaping tiger

Image source: Getty Images.

Now what

That's not half bad...for Tiger Global! And yet, it does raise the question of whether investors are acting wisely in rushing out and buying Peloton stock today, after the gains have been made.

Peloton had a decent quarter earlier this month, reporting 65% sales growth and exceeding analyst expectations. However, at a $12.8 billion market capitalization today, but with no GAAP profits and no free cash flow to its name, Peloton Interactive is hardly the definition of a value stock right now.

While I applaud Tiger's foresight in buying the stock ahead of a well-received earnings report, I'm really not interested in trying to chase this now-overpriced bull any higher.