Peloton Interactive, Inc. (NASDAQ:PTON) has caught the attention of Jim Cramer during his latest market analysis. A viewer reached out expressing interest in the company’s growth prospects, mentioning their acquisition of shares at a price just below $10. Cramer responded:
“Honestly, I wasn’t impressed with the report. I anticipated this quarter to be a breakout one. They seem overly focused on hype, which is a red flag for me, so I’m inclined to pass. While I appreciate subscription models, I prefer those resembling Spotify, Costco, or Amazon.”
Stock market data. Photo by Alesia Kozik on Pexels
Peloton Interactive, Inc. (NASDAQ:PTON) specializes in connected fitness equipment such as bikes, treadmills, and rowers, in addition to providing app-based membership services. During the lightning round of the June 6 show, a caller asked about the stock, to which Cramer asserted:
“It is indeed a subscription model, and I do support subscription businesses. However, I’m not convinced they possess sufficient growth potential. For that reason, if you are leaning towards a subscription service, I would suggest considering Spotify instead.”
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Disclosure: None. This article originally appeared on Insider Monkey.
