New York(CNN Business) Peloton may have bigger problems than the public relations fallout from the controversial ad that became a meme. Short-seller Citron Research said Tuesday it expects the stock to plunge nearly 85% to just $5 a share.
Citron said in the report, titled “Investors Peddling Themselves into Frenzy,” that Peloton (PTON) is reminiscent of GoPro (GPRO) and Fitbit (FIT).
Those two companies were once market leaders in their respective categories of wearable action cameras and fitness trackers. But an onslaught of competition hurt their sales and profits and proved that they were just one-trick ponies.