Shares of Peloton Interactive (PTON -14.44%), a connected fitness product company, jumped sharply on Monday. As of 2:08 p.m. EDT, the stock was up more than 7%.
The stock's move higher on Monday was likely helped by optimism in the overall market and particular strength in growth stocks like Peloton.
Peloton stock has soared this year, climbing more than 150% year to date. The stock's move on Monday, therefore, builds on strong momentum this year.
The primary reason for the stock's gain has been its impressive growth as consumers turn to the company as a solution to replace gym memberships. With Peloton products, customers get access to a virtual community and a high-quality product that allows them to exercise while sheltering at home.
But Peloton stock has also benefited in recent months from investors piling into technology growth stocks during the COVID-19 pandemic. These stocks have been viewed by investors as some of the best beneficiaries of a work-from-home environment. Many high-profile growth stocks were up several percentage points or more on Monday.
Following a strong fiscal third quarter, the company lifted its outlook for fiscal 2020 when it reported its quarterly results in May. Peloton now expects total revenue during the period to be between $1.72 billion and $1.74 billion, translating to 89% year-over-year growth.