What happened

Shares of Peloton Interactive (NASDAQ:PTON) rose on Thursday, as investors bid up stay-at-home stocks. As of 3:28 p.m. EST, Peloton's stock price was up 5.8%.

So what

Great news from Moderna and Pfizer on the coronavirus vaccine front has investors eagerly looking forward to a return to normalcy. But the pandemic is unlikely to end until well into 2021 at the earliest, due in part to the time it will take to vaccinate hundreds of millions of Americans and billions of people around the world.

In the meantime, COVID-19 case counts are soaring. Worse still, the U.S. reported more than 3,000 coronavirus-related deaths on Wednesday alone. 

A person is riding a Peloton stationary bike while watching a fitness class.

Peloton's stock climbed on Thursday. Image source: Peloton.

The alarmingly high number of COVID-19 cases -- and a new wave of lockdowns and other social-distancing measures that governments are enacting to slow the spread of the disease -- are likely to keep more people out of gyms and searching for home-based fitness solutions. That, in turn, is likely to boost sales of Peloton's popular stationary bikes and treadmills.

Now what

Investors should note that Peloton's competition is intensifying, with Apple set to launch its new Fitness+ service on Dec. 14. Still, there will likely be more than one winner in the rapidly growing home-based fitness market, and Peloton appears well positioned to be one of them.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.