Peloton Interactive (PTON) stock sank on Wednesday after the interactive fitness company announced an artificial intelligence (AI)-focused overhaul. With this comes the introduction of Peloton IQ, an AI and computer vision system that provides the company’s customers with personalized guidance.
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Peloton noted that its AI launch will cover its entire portfolio to offer deep fitness insight to customers. That includes personalized plans, performance estimates, insights and analysis, and personalized recommendations. Peloton Chief Product Officer Nick Caldwell said this will allow the company to “combine a deep understanding of your workout history and wearable data with your real-time performance and your form to give you the guidance you need to meet your goals.”
Additionally, the company announced the Peloton Cross Training Series, which includes new base and premium equipment. Included in this are five fitness devices: Cross Training Bike, Bike+, Tread, Tread+, and Row+. These devices come with advanced features and can be paired with Peloton IQ. The company noted that this will allow for tracking across multiple devices, offering a complete picture of a customer’s workout and health.
Peloton Stock Movement Today
Peloton stock was up in pre-market trading on Wednesday but quickly gave up those gains after the opening bell. Investors appear unimpressed by the company’s new AI and product announcements, with PTON stock down about 8.33% but still up 3.45% year-to-date. The stock has also rallied 94.81% over the past 12 months.
Is Peloton Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Peloton is Moderate Buy, based on seven Buy and seven Hold ratings over the past three months. With that comes an average PTON stock price target of $9.96, representing a potential 22.51% upside for the shares.
