Here is a comprehensive guide to investing in Peloton in 2023. We will start by providing you with a step-by-step guide on how to buy Peloton shares on most regulated brokerages. We will then break this process down and cover each step in detail. We will tell you where to buy Peloton shares and how to find the best Peloton shares broker that works for you.
By the end of this guide, you will have learnt everything you need to know before buying Peloton shares in 2023. We will also tell you about the factors we believe will have the greatest influence on PTON shares in 2023. You will also have decided whether Peloton is worth buying today.
Your capital is at risk. Other fees apply.
Let us break this process down and cover each step in detail. Let us tell you where to buy Peloton shares and everything else you need to know about the exercise equipment company before you invest in its stock below.
The Peloton (PTON) Stock Buying Guide - Reviewed
Step 1: Decide Where To Buy Peloton (PTON) Stock
The first step to investing in Peloton, or any other company, is identifying the best online stock brokerage where you can buy its shares. But when there are hundreds of popular brokers listing the stock, finding one that works best for you can be overwhelming.
To help you get started with this search, though, we outline a few factors that you ought to prioritize when looking for the best Peloton shares broker. These are:
- Pricing: Compare the pricing of different Peloton shares brokers and register with the most affordable. In this case, you will want to compare the trading and non-trading fees and commissions levied by different brokers.
- Trading platform: The ideal broker should also operate a highly intuitive trading interface. This should integrate sufficient trading, educational, and risk-management resources and tools that appeal to both novice and expert traders.
- Account limits: We have already mentioned that different brokers maintain different trading and deposit minimums. Ensure you can afford these minimums, and the broker supports your preferred deposit method.
- Regulation and reputation: We advise that you only register with a regulated broker. They should also have a solid reputation for reliability and excellent customer service.
- Security: The ideal broker should also guarantee the security and safety of client funds and personal data. They should maintain segregated bank accounts for client deposits, insure these deposits, and not share client info with third parties.
Our analysts have vetted tens of massively popular and highly effective online trading platforms. Ultimately, they settled on the following two as the best places to buy Peloton shares in 2023.
eToro – Best for User Friendliness and Social/Copy trading
eToro is one of the most popular online trading platforms, trusted by 25+ million investors across the world. It is licensed by virtually all tier-1 regulatory agencies – including SEC in the US and FCA in the UK. Additionally, it is a multi-asset trading platform – listing 5000+ trading instruments, including shares, commodities, indices, ETFs, and crypto. These, and its solid reputation, are some of the reasons we believe it to be one of the best Peloton shares brokers.
You may also want to buy PTON stock on the platform because of its highly innovative trading platform. It has one of the fastest transaction speeds and a highly intuitive multi-platform trader interface – available as a web trader and mobile app.
But more importantly, it integrates a wide range of trading, research, educational, and risk management tools. These include demo accounts, charting tools, stop loss, and negative balance protection.
To start buying Peloton shares on eToro, you will need to deposit at least $10 ($200 if copy trading). This account can be funded via such supported payment methods as credit and debit cards, bank wire transfers, and eWallets like PayPal. We must also observe that eToro is a commission-free broker. Therefore, when buying Peloton shares on eToro, you will only have to part with a competitive spread.
eToro also makes it here because of its social and copy trading features. Social trading allows for seamless interactions between all eToro platform users. Copy trading, on the other hand, makes it possible for all eToro platform users to earn passively.
PRO investors receive a commission from eToro when they allow others to copy their Peloton stock trade settings. You, on the other hand, can make money by activating the copy trading feature that automatically mirrors the trade settings of your favorite expert investor to your trading account.
Your capital is at risk. Other fees apply.
Capital.com – Best CFD Brokerage for Active Traders
Several factors make Capital.com – a pure CFD trading platform – one of the best places to buy Peloton stock in 2023. First is the fact that it is regulated by virtually all tier-1 trading platforms. Its users also appreciate the fact that it is a multi-asset trading platform that lists shares, indices, commodities, ETFs, and even crypto. It is also easy to use and operates one of the friendliest client onboarding processes.
Capital.com also tops the list of our best Peloton shares brokers because of its highly innovative trading platform. It has one of the fastest order execution speeds, is highly intuitive, and features a range of educational and trading tools and resources meant to draw in both novice and expert share traders.
Every Capital.com user, for example, gets a free demo account with $10,000 in virtual funds. The trading platform also integrates 75+ advanced analytical tools and is also powered by AI (artificial intelligence).
More importantly, Capital.com is a multi-platform brokerage. In addition to its proprietary web and mobile app trading platforms, it also supports third-party platforms like MT4 and Trading View. This has endeared the broker to active traders because it gives them access to more advanced trading, analysis, research, and risk-management tools. MT4, for instance, allows for algo-trading and mirror trading (similar to eToro’s copy trading).
To start buying Peloton shares on Capital.com, you will need to deposit at least $20. The broker supports all the popular payment methods and doesn’t charge a payment processing fee. Capital.com is also commission free.
You, therefore, will only pay a competitive and variable spread when trading PTON share CFDs on the platform. You could also margin trade the stock with leverage of up to 1:5, but margined trades that remain open at the end of a trading session will attract a swap/overnight fee.
Step 2: Research Peloton (PTON) Stock
Before you can start stocking Peloton shares, you need to learn about the company and the factors that affect its share price. Learn about the company’s history and how it works, learn how it makes money, and confirm its financial health.
Confirm how all these and other external factors affect PTON’s share price action. You must master these price triggers as they will determine your buy, sell, and hold decisions for your Peloton shares.
Let us discuss all these and more below.
What is Peloton?
Peloton Interactive Inc. is an American multinational fitness and media company with its headquarters in New York. It was started in 2012 with the aim of providing boutique fitness services to users at home. It had a mission of offering immersive, challenging, and practical workouts into people’s lives in an “accessible, affordable, and efficient way.”
To achieve this, Peloton combined technology, professional content, pro-trainers, and a sense of community to its offer. They provide internet-connected fitness and exercise equipment, especially stationary bikes, indoor rowers, and treadmills. These have touchscreen interfaces that buyers use to stream on-demand or live fitness classes. You also gain access to a rich library of fitness classes and specially curated playlists.
Peloton has also established a network that allows for interactions between its members. It, for instance, has the Peloton leaderboard that ranks users based on real-time stats collected and uploaded to this network by the sensors on Peloton’s exercising equipment. The leaderboard ranks participants based on their performance, and you can tap on a participant’s/friend’s username on the leaderboard and motivate or encourage them with a virtual high five.
Peloton Interactive makes money in three primary ways. Its main source of income is the sale of connected fitness products. The second source is its two subscription plans. Thirdly, it makes money from the sale of Peloton apparel and other fitness and exercise-related products.
The two subscription plans are a $44 per month all-access plan that gives users access to live and on-demand fitness classes on the web, app, and on Peloton equipment like the Bike and Treadmill. The second is a $12.99 per month subscription for its app and web services. Peloton products and accessories, on the other hand, include glass water bottles, resistance bands, and apparel.
Peloton’s annual revenues have been on an overall uptrend since its establishment. In the last five years, for example, Peloton’s total annual revenues have jumped by more than 1800%, from around $219 Million in 2017 to more than $4 Billion in 2021.
Much of Peloton’s revenue growth came about during the Covid-19 pandemic era. Its annual revenues, for instance, only tore above $1 Billion in 2020 and grew three-fold between 2020 and 2021 to reach $4 Billion. The company’s annual revenues, however, fell by more than 10% in 2022 to $3.5 Billion.
Interestingly, Peloton has never posted a positive net income – which is in sharp contrast to its rising annual revenues. In 2022, the company had its worst year on record, yet, when net losses for the year hit $2.8 Billion. This translates to a 1400%+ increase in net losses from the -$189 Million reported in 2021.
The lack of profit has meant that Peloton is yet to start distributing dividends, more than three years after its public listing.
Peloton Historical Price Performance
Peloton Interactive Inc. went public in September 2019 when it was listed with NASDAQ. On this day, 40 million PTON shares were availed to the public at an average price of $29. This was slightly below the prospective IPO price, and by the end of the day, it had dipped 10% to sell for $26 - giving Peloton a market cap of $8.6 Billion at the time.
PTON’s price correction continued and the stock traded below its listing price throughout the month of September. It attempted a rally in December but couldn’t break above $35. In fact, when the panic selling hit the markets after Covid-19 struck, Peloton’s price dropped below $20 in March 2020 - for the first time.
But the market soon realized the opportunity a locked down economy would present fitness industry stocks. This sent PTON stock price rallying, and in June 2020 - it broke above $50. This rally continued throughout the second half of 2020, with the stock breaking above $100 in October before hitting its current all-time high of $167 in January 2021.
Two years later, Peloton has lost all the Covid-19-inspired gains. The fitness and media company, for example, stormed into 2023, trading 95% below its all-time high and close to 70% below its IPO price.
Factors Affecting Peloton Share Price
Before you start buying Peloton shares, you need to understand the factors affecting its price. Below, we discuss a few factors that we believe will have the most impact on PTON stock price in 2023 and beyond:
- Macroeconomics: Much of Peloton’s stock price gains can be attributed to the pandemic-inspired rally. Now that the pandemic is almost nearing its end, PTON’s stock price has witnessed a sharp and negative price correction. You can expect this correction to continue for the better part into 2023.
- Company finances: Peloton’s disappointing price action could be attributed to its streak of losses. Nothing in the company’s near future, including the recently announced company-wide restructuring, promises to turn the company’s fortunes around – anytime soon. You may, therefore, expect the company to continue reporting net losses and down-trending PTON stock price.
- The number of users: You will also want to keep an eye out on the number of Peloton equipment sales and subscribers. These play the greatest role in influencing the company’s finances, which – in turn – influences its stock price.
Your capital is at risk. Other fees apply.
Step 3: Open A Share Investor Account And Buy Peloton (PTON) Stock
Do you wish to jump straight to buying Peloton shares in 2023? We recommend that you use the following beginner’s guide that teaches you how to acquire your first PTON stock on the all-popular eToro trading platform.
Open a stock broker account
On your browser, open the official eToro website or download the eToro mobile trader app. Click on the “Join Now” icon on either platform and complete the user registration form that pops up. The broker will also need you to create a username and strong password for this account.
Verify your identity
Since eToro is a highly regulated broker, it is regulated by the law to subject its platform users to KYC checks. This requires you to submit a copy of a government-issued identification document to the broker.
Log in to the just approved investor account and on the user account and click on the “Deposit Funds” tab. A funding tab will pop up, indicating all the payment methods available to you - based on your country of residence. Choose one payment option and follow the prompts to deposit at least $10 into your user account.
Buy Peloton stock
After the funds reflect in your account, click on the “Discover” tab to reveal the assets supported by the broker. Choose “Stocks” and search for Peloton from the list of shares supported by eToro. Tap the “BUY” option and use the trading tab that pops up to customize the trade by indicating the number of PTON shares you wish to buy or the amount you wish to invest in the fitness and media company.
Your capital is at risk. Other fees apply.
Peloton (PTON) Stock Strengths And Weaknesses
Before you hit the Open Trade button on eToro or any other brokerage, you have to ask yourself – is Peloton even worth buying today? This answer should help you determine whether to buy Peloton shares or just add them to your stock watchlist.
To help you make this decision, we have identified a few reasons why you should consider buying peloton stock in 2023. We have also listed a few reasons not to buy Peloton shares today. Compare these and decide if PTON is worth investing in.
Reasons to Buy Peloton Stock in 2023
- Restructuring and new management: Peloton is now under management and has embarked on a cost-cutting approach t running the fitness company. The new team is cutting down on manufacturing costs and restructuring the organization.
- Grossly underpriced: Currently selling more than 70% below its all-time high, Peloton can be said to be grossly undervalued. And with a new approach to business and new management, you may expect PTON stock price to start correcting upward soon.
- Added sales distributors: Traditionally, Peloton sold its equipment primarily through its website. Today, however, the company seeks to boost sales and company revenues and also expand to new markets by partnering with multiple third-party sellers and distributors - including Amazon.
Reasons Not to Buy Peloton Stock
- Falling revenues and perennial losses: Peloton revenues have been on a steady decline, especially after the pandemic-inspired boom started rescinding. The new management has also warned investors that the company may not turn a profit anytime soon. These will most likely continue hurting PTON’s price action.
- Stiff competition: Peloton faces stiff competition from other online fitness companies like Fitbit. And with an opened-up economy, you may expect some of its current subscribers to go back to physical gyms. These, plus the high cost of living, will also continue hurting Peloton's share price moving forward.
Conclusion - How To Buy Peloton (PTON) Stock
There goes everything you need to know about how to buy Peloton stock via some of the most regulated brokers. Hereinabove, we have introduced you to what we consider the best Peloton shares brokers and pointed out a few factors that you need to consider when choosing a broker.
We have also told you everything you need to know before buying Peloton shares. We have also outlined the reasons to buy and not to buy PTON shares to help you decide if the fitness and media company is worth investing in today.
Convinced that Peloton is worth buying? Use the beginner’s guide that we have described above, teaching you how to buy Peloton shares on the all-popular eToro.
eToro – Buy Peloton Stock With 0% Commission
Open an account with eToro, deposit some funds with USD, and finally – buy Shares from just $10.
Your capital is at risk. Other fees apply.
FAQs About How To Buy Peloton Stock
How can I buy Peloton stock today?
Start by finding a regulated broker that lists Peloton shares and create a stock investor with them. Fund this account, search for PTON shares on their trading platform, hit the buy option, and customize that trade.
What will Peloton be worth in December 2023?
Peloton is currently struggling under the pressures of declining revenues, mounting losses, and the dissipation of the pandemic boom that made it so popular. Add these to the looming global recession, and they all make it impossible for anyone to tell what Peloton will be worth in December 2023.
Is Peloton worth buying in 2023?
No, Peloton is a dangerous buy at the moment because of the many problems facing its business model. While it has one of the highest customer loyalty rates, its equipment sales volumes, total annual income, net income, and new subscriber numbers have been on a downward trajectory.
How much do I need to start investing in Peloton today?
You get to decide the maximum investment amount you wish to invest in Peloton. Most brokerages will, however, set the minimum investment amount – primarily in line with their trading and deposit minimums.