Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock

By: Nadeem_Walayat

Youtube and the wider internet is full of Peloton fan boys, yes the product may be good but that does not mean the stock is in any fit shape to park ones hard earned wealth into, not unless one is gambling. Which is why whenever I was asked about Peloton and other similar over hyped growth stock my response tended to be that it is far too high risk for me. We'll now all those who don't do the maths got to feel the pain of what it is like to be invested in such stocks that dominate the likes of Cathy Woods ARK funds.

Form what I understand Peloton's results weren't that bad i.e. their forecast revenue was $809bn and they achieved $805 billion. whilst their reported loss per share came in at -$1.25 vs expectations of -$1.10. Should such numbers justify a 1/3rd collapse in the stock price? Apparently yes for the fundamental fact is that the stock was over priced and thus there was NO Margin for error! Not only that but it was a pandemic stock! People staying at home and working out on their bikes and treadmills, or at least planning to do so by buying and signing up to Peloton's monthly programmes. WELL the pandemic is largely OVER! So what did investors expect was going to happen? A quick look at what the peloton fan boys were saying shows that they had convinced themselves that the pandemic had changed the world and thus from now one everyone would be happy to workout on their own at home rather than at their local gyms and hence new highs were just around the corner! A lesson to all the Nvidia fan boys out there of what could be in store for them on November 17th.

And NO I would not buy Peloton AFTER it's stock price crash. That corporation is nowhere near making a profit and thus it's not worth it's current $17 billion market cap, let alone the $50 billion it was trading at earlier in the year. And there are plenty more pandemic plays out there in for an similar fate, Zoom comes to mind for one.

This analysis is an excerpt from my recent extensive analysis - AI Tech Stocks Portfolio Updated Buying Levels and Zones as Financial Crisis 2.0 Continues Brewing

Contents:
Financial Crisis 2.0 Checklist
The China Syndrome
Stock Market Begins it's Year End Seasonal Santa Rally
Stock Market Trend Forecast Current State
INVESTING LESSON - BUYING VALUE
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock
INVESTING LESSON - Give your Portfolio Some Breathing Space
INVESTING LESSON - Give your Portfolio Some Breathing Space
How Stagflation Effects Stocks
INTEL Bargain - 15.5% Discount Sale
Why Intel stock price dropped 15%?
FACEBOOK - 10% DIscount
IBM - 20% Discount
Amazon - 5% Discount
APPLE 4% Discount
AMD $136 on Route to $200
TSMC - $117
Microsoft $336
Google $2980, PE 28.7, EC 30.
Nvidia Leaves planet Earth - $299, PE of 106
Heads Up on NEW Potential Tech Stocks
AI Stocks Portfolio Updated Buying Levels
AI Stocks Buying Plan B
FREE TRADE the Perfect Stocks and Shares ISA?
FREE SHARE FROM FREETRADE
High Risk Stocks Brief
Crypto's 20% Discount Event
Bitcoin Trend
Palladium Brief

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Also access to my recent analysis that maps out what I expect to happen during the next big crypto bull market is only just beginning for most crypto's

Bitcoin NEW All time High is TRIGGER for Future Alt Coins Price Explosion

Contents:

• Bitcoin & Ethereum 2021 Trend
• Crypto Portfolio Current State
• The BITCOIN NEW ALL TIME HIGH Changes EVERYTHING!
• Ravencoin to the MOON!
• What am I doing?
• How to Invest in Crypto's
• Bitcoin 2022 Price Target
• Ethereum 2022 Price Target
• Ravencoin 2022 Price Target
• Cardano (ADA) 2022 Price Target
• Chainlink 2022 Price Target
• Pokadot 2022 Price Target
• Solano 2022 Price Target
• Litecoin 2022 Price Target
• Arweave 2022 Price Target
• Stellar Lumens - XLM 2022 Price Target
• Eth Classic 2022 Price Target
• Vechain 2022 Price Target
• EOS 2022 Price Target
• Earnings Noise Delivers INTEL And IBM Buy Opps
• Facebook and Google Could CRASH 10% Post Earnings Day
• High Risk Stocks Swings and Roundabouts

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• Best Real Terms Asset Price Growth Countries for the Next 10 Years
• Worst Real Terms Asset Price Growth Countries for the Next 10 Years
• The INFLATION MEGA-TREND
• Ripples of Deflation on an Ocean of Inflation!
• Stock Market Trend Forecast Current State
• US Dollar - Stocks Correlation
• US Dollar vs Yields vs Dow
• Stock Market Conclusion
• 34th Anniversary of the Greatest Crash in Stock Market History - 1987
• Key Lesson - How to REALLY Trade Markets
• AI Stocks Portfolio Current State
• October Investing Plan
• HIGH RISK STOCKS INVEST AND FORGET PORTFOLIO
• Can US Save Taiwan From China?

And my extensive analysis of Silver concluding in a trend forecast into Mid 2022.

Silver Price Trend Forecast October 2021 to May 2022, CHINOBLE! AI Stocks Buying Plan

• UK Inflation Soaring into the Stratosphere, Real rate Probably 20% Per Annum
• The 2% Inflation SCAM, Millions of Workers take the Red Pill
• Silver Previous Forecast Recap
• Gold Price Trend Implications for Silver
• Silver Supply and Demand
• Silver vs US Dollar
• Gold / Silver Ratio
• SILVER Trend Analysis
• Long-term Trend Analysis
• Formulating a Trend Forecast
• Silver Price Trend Forecast October 2021 to May 2022
• Silver Investing Strategy
• SIL ETF - What About Silver Mining Stocks?
• Gold Price Trend Brief
• Why the CCP is Living on Borrowed Time and Needs a War
• Understanding the Chinese Regime and What it is Capable Of
• Guanxi
• Chinese People do NOT Eat Dogs Newspeak
• CHINOBLE! Evergrande Reality Exposes China Fiction!
• AI Stocks Portfolio Investing Strategy
• AI Stocks Portfolio Amendments
• AI Stocks Portfolio Current State
• October Investing Plan
• HIGH RISK STOCKS INVEST AND FORGET PORTFOLIO
• Why China Could Crash Bitcoin / Crypto's!
• My Next Analysis

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Nadeem Walayat has over 35 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

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