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We recently published a list of AI Stocks Dominate Friday’s Top 10 Performers. In this article, we are going to take a look at where Peloton Interactive Inc. (NASDAQ:PTON) stands against other AI stocks that dominate Friday’s top performers.
The stock market bounced back on Friday, erasing the week’s losses following news that a feared government shutdown is unlikely to happen amid news that a funding plan is likely to be passed.
The tech-heavy Nasdaq recorded the highest gain, adding 2.61 percent, followed by the S&P 500 with a 2.13-percent gain, and the Dow Jones with 1.65 percent.
Ten companies, predominantly under the AI industry, mirrored the broader market optimism, registering strong double-digit gains during the session. In this article, we have named the day’s best performers and detailed the reasons behind their performance.
To come up with the list, we only considered those with $2 billion in market capitalization and $5 million in trading volume.
A group of people in a fitness class with connected fitness products in a studio or gym.
Peloton Interactive Inc. (NASDAQ:PTON)
Peloton Interactive rallied by 16.6 percent on Friday before a slight pullback to end just up by 16.14 percent at $7.05 apiece as investors cheered the company’s upgraded rating from an investment firm.
In a report on Friday, Canaccord raised its outlook for PTON to “buy” from “hold” previously, citing the company’s progress in rebounding to profitability and its strong position in the fitness industry. It also gave the company a $10 price target, representing a 42-percent upside from its latest stock price.
According to Canaccord, PTON is well-positioned for future growth, supported by a loyal member base of 6 million.
For the full year 2025, Canaccord expects PTON to achieve between $300 million and $350 million in adjusted EBITDA, a significant jump from the $3.5 million in the full year 2024.
Additionally, it sees revenues to inflect next year with new initiatives to be supported by subscriber growth by 2027.
Overall, PTON ranks 7th on our list of AI stocks that dominate Friday’s top performers. While we acknowledge the potential of PTON as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as PTON but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.