Citron Research Presents Peloton – Investors Peddling Themselves into Frenzy
2020 Price Target $5
Before we even start with the narrative, we are obligated to show the only chart that matters.
Unless Peloton invents a piece of equipment that works out for you – this is going to $5 (which is still a $1BN-$2BN market cap).
Looking back over the past 5 years, one of biggest trading regrets held by Citron was not being more aggressive and staying short GoPro from the article we published in late 2014.
https://citronresearch.com/wp-content/uploads/2014/11/gpro-final.pdf
While Wall St was giddy over the new “must have product”, Citron maintained that GoPro sold a consumer electronics device that would eventually show decelerating growth as competition came into the marketplace. At the end of the day no matter how much lipstick Wall St put on this company, it was just a camera – the rest is history.
Disclosure: Yes, we own a Peloton bike just like we owned a GoPro, Fitbit, Blackberry, and even an ab roller… but who cares.
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