What happened

Shares of Peloton Interactive (NASDAQ:PTON) climbed 5.4% on Friday, as investors rotated back into stay-at-home stocks.

So what

Following tremendously positive news from Pfizer and Moderna on the coronavirus vaccine front, many investors reacted by selling off shares of companies that have performed well during the pandemic. This included Peloton, which saw its stock price skyrocket by more than 360% by mid-October, as sales of its home-based fitness equipment soared following gym closures. 

A person draws a line that rises, then falls, then rises again.

Peloton's stock rose sharply on Friday. Image source: Peloton.

However, with COVID-19 case counts mounting at an alarmingly high rate, governors across the country have begun to reinstitute lockdown procedures and other social distancing measures. Investors were thus reminded that the pandemic is still far from over. In turn, stay-at-home stocks, such as Peloton and Zoom Video Communications, have rallied in recent days. 

Now what

Demand for Peloton's exercise bikes and treadmills is unlikely to wane any time soon. Even after the COVID-19 crisis subsides, many people who have purchased personal fitness equipment will continue to work out in the safety and comfort of their own homes, so as to maximize their investment and enjoy the privacy and other benefits home gyms can provide.

More than 1.3 million people who bought a Peloton bike or treadmill pay $39 per month to access its steadily expanding library of fitness classes. This booming segment of Peloton's business -- the company's subscriber base surged 137% year over year in the first quarter -- is likely to continue to drive the home-based fitness leader's growth in the years ahead.

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