Why You Were Right For Not Buying Peloton Stock In 2021 – Money Digest

In early 2021, the world was drastically different than it had been just a year before. The COVID-19 pandemic pushed many people to spend more time at home, while the economy experienced instability, much like how wars can effect the stock market. This is perhaps best exemplified in the growth of Peloton. Those paying attention to stocks at the time may have seen quite the opportunity — Peloton reported 100% fiscal year growth in its Q4 2020 shareholder report, reaching $1.8 billion in revenue. Its stock prices had already shot up an incredible 471.45% between April 2020 and December of the same year – hitting over $150 per share. However, if you were among those who didn’t jump on Peloton stock in 2021, it turns out you made the right move. The stock growth didn’t last long at all — plummeting to just $35.76 by December 2021. Perhaps even more alarming for investors, it continued to fall over the next several years. As of August 31, 2026, Peloton’s stock was a measly $5.36 a share.

Needless to say, Peloton won’t be making the list of best dividend stocks for long-term income anytime soon, if ever. Ultimately, Peloton’s success was largely driven by the pandemic-fueled home exercise market thanks to many gyms being closed or limiting public use due to social distancing. Coupled with the short-lived increase in remote work — Peloton marketed itself for use while working from home – and it was only natural that the company’s boom wasn’t destined to last in the post-pandemic economy.

By late 2021, more people had begun going back to work outside of the home — with the trend increasing through 2023. Unfortunately, Peloton made the mistake of miscalculating just how badly this shift would impact its business. As early as November 2021, the company’s Chief Financial Officer Jill Woodworth admitted to investors that they had underestimated the impacts, and were not prepared for them. In June 2022, Woodworth stepped down from her role.

Meanwhile, Peloton’s financial numbers continued to deteriorate quickly, and the Q4 2022 shareholder letter, from CEO Barry McCarthy, even asked shareholders not be dismayed by the company’s revenue declines and negative gross margins. McCarthy also blamed a large portion of that quarter’s $1.2 billion operating losses on company restructuring costs. Although subsequent company reports showed growth in connected-fitness subscribers, this subscription growth wasn’t enough to offset the fact that equipment sales continued to decrease. In May 2024, McCarthy himself stepped down from Peloton, and a 15% staff reduction was announced.

Unlike other once-popular brands who have filed for bankruptcy Peloton has yet to file as of September 2026 — despite rumors that it might. For now, the company is continuing to work on improving its finances and generating positive cash flow, but for investors who bought shares amid the 2021 boom, it may be too little, too late.