Peloton Interactive (PTON 2.44%) has been a popular stock in recent years, though it's considerably less popular these days. If you're wondering how those who invested in the recent past have fared, check out the table below:
|
Time period |
Average Annual Return |
|---|---|
|
Past 1 year |
(31.36%) |
|
Past 3 years |
(20.77%) |
|
Past 5 years |
(48.48%) |
Data source: Morningstar.com as of Jan. 23, 2026.
Image source: Getty Images.
Yikes, right? The table shows that if you'd plunked, say, $1,000 of your hard-earned dollars into at-home fitness specialist Peloton Interactive five years ago, your stake in the company would now be worth around $37. (If you'd parked that money in an S&P 500 index fund instead, it would now be worth around $1,879.)
NASDAQ: PTON
Key Data Points
What happened? Well, Peloton enjoyed a tailwind at the outset of the COVID-19 pandemic, as many people opted to exercise at home instead of at a gym. But its equipment wasn't (and isn't) cheap, and sales eventually dropped. The company has had several CEOs in a relatively short period, and has laid off employees.
After the stock has fallen so far, is it now bargain-priced and worth buying? Is it a golden opportunity or a value trap? It depends on whom you ask. Bulls note that the company is back to generating positive cash flow again, and they like that much of its revenue comes from subscriptions -- as that produces fairly reliable income.
But bears note that those subscribers have shrunk in number (recently by 6% year over year) and total revenue for its first quarter was also down, also by 6%. A successful turnaround has not yet been fully achieved.
So I'd hold off on this stock. It will be a less risky proposition once it's growing more robustly. In the meantime, there's no shortage of promising growth stocks out there.
