Peloton stock extends its plunge as the 13-month run in the Nasdaq-100 is about to end

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Shares of Peloton Interactive Inc. extended their decline toward a 21-month low on Friday, just 13 months after the Nasdaq said it was adding the at-home fitness company to its Nasdaq-100 index to boot.

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stock ptone,
-3.58%
It declined 5.3% in afternoon trading, hitting its lowest level since April 2020.

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Nasdaq said late Thursday that the peloton will be replaced Trucking company Old Dominion Freight Line Inc. In Nasdaq-100 by ODFL,
-0.81%,
Before the opening bell of January 24.

Old Dominion’s stock fell 2.0% on Friday, but has risen nearly 50% over the past 12 months, according to data from FactSet, raising its market capitalization to $35.9 billion from about $24.3 billion last year.

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nasdaq-100 ndx,
+0.14%
The 100 largest non-financial companies by market cap are listed on the Nasdaq Exchange. Peloton currently has the lowest market cap in the index at $10.05 billion, or almost half of the next lowest market cap, which is Splunk Inc.’s SPLK,
+0.14%
$19.04 billion.

Peloton was one of Wall Street’s hottest post-pandemic dramas in 2020, as gym closures sparked a “work-in” boom. The March 2020 low of $19.51 which was hit a day after the World Health Organization declared the COVID-19 outbreak a pandemic by December 21, 2020, as a Nasdaq-100 component in the peloton’s first The day was up, the stock had skyrocketed 640%.

FactSet, Marketwatch

Peloton had a market cap of $42.1 billion as of December 21, 2020. The stock rose even further to a record high of $167.42 on January 13, 2021, with a market cap of $49.3 billion, as the daily average of COVID-19 cases rose to a record low at the time.

The peloton’s fall from grace since then was nothing short of surprising. The stock is now down 79% since entering the Nasdaq-100, wiping out nearly $32 billion in market cap, even as daily COVID-19 cases now triple from January 2021 records are more. Read Businesshala’s daily “Coronavirus Update” column.

don’t missPeloton stock keeps falling as JPMorgan analyst cuts price target, but remains bullish.

read alsoPeloton stock is a buy, but with an ‘asterisk’, analysts say.

FactSet, Marketwatch

Here’s how. shares of other companies Who entered the Nasdaq-100 at the same time as Peloton has performed since, and their current market cap:

The Nasdaq-100 is up 21.8% over the same time period, while the S&P 500 index SPX,
-0.43%
has increased by 25.1%.

Meanwhile, Truist analysts Michael Swartz and Yusuf Squally said Friday they remain high on the at-home fitness trend, and believe Peloton will be a “major” beneficiary.

Analysts said a recent survey of nearly 1,400 adults showed that despite widespread gym reopenings and vaccine availability, there has not been a corresponding decrease in interest or participation in exercise at home.

“This reinforces the belief that the habitual changes made over the past 22 months will ultimately produce a structurally larger home fitness TAM. [total addressable market],” the analysts wrote in a note to customers. “For [Peloton]We are starting to warm up to the name again based on the many positive findings from this survey, although we believe it is too early to get creative on the name given the near-term performance uncertainty. ,

Truist has put the peloton on hold since November 5, 2021, after being on purchase two years ago. The company went public in September 2019 at an initial public offering price of $29.

The stock was down by a record 35.4% on November 5, 2021, after Peloton reported wider-than-expected fiscal first-quarter losses and revenue that was lower than forecast, Chief Financial Officer Jill Woodworth said. Acknowledging the impact of the reopening was “underestimated.”

The company’s next earnings report is expected to be released in early February.

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