Market News

Peloton Stock Falls after Losing Patent Court Case

Chalk up another loss for Peloton (NASDAQ:PTON) as the beleaguered exercise equipment maker just lost a patent case. This time, Peloton pitted itself against Dish Network (NASDAQ:DISH), and the result was a lost court case along with a 7.5% loss for Peloton in Friday’s trading.

This time, Dish Network filed a complaint with the International Trade Commission (ITC), noting that Peloton—along with iFit—was using a device that featured technology similar to that of Dish’s Hopper DVR system. More specifically, the Peloton devices were using an adaptive bitrate technology that was a lot like Hopper’s, and Dish cried foul. Peloton’s streaming devices were used on both its treadmills and its bicycles, which will likely limit what Peloton can import as a result.

Peloton declared itself disappointed but said there would be no disruption for customers. The ITC’s action has to go through the Biden Administration, and it has 60 days to review the ban that halts a good chunk of Peloton shipments. Additionally, the import ban won’t stop Peloton from being able to offer new classes or continue streaming to those customers who already own the hardware in question. Should that hardware break down, however, replacing it might be a challenge.

Overall, Peloton currently has a Moderate Buy analyst consensus rating with 29.8% upside potential thanks to its average price target of $15.29.


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