We have all heard the stories about how people got rich buying stocks like Peloton at the beginning of the pandemic due to the need to exercise more at home whilst lockdowns were active and gyms were closed. The huge demand for home gym equipment saw world shortages and with a $2000 price tag, Peloton was the most sought after and their stock price reacted. Shooting from just $23 per share at the start of the pandemic and reaching $162.72 at its highs, it seemed like there would be no stopping this stock until supply chains broke down, restrictions were lifted and being social at the gym was now a much-needed necessity for most of us.

Since the pandemic, we have seen Peloton hit the news for all the wrong reasons including working with an actor who is facing sexual assault charges, the death of a minor which saw their new treadmill get entirely recalled and the fact that they cannot get the parts to even build their leading bike product. This has seen the stock plummet back down to lows of almost $30 which has left a lot of holders back to square one and also investors seeing some serious red numbers when buying at the top or at any point since the beginning of the pandemic.

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The good news is that the Santa rally has seemed to come through for Peloton stock as they just hit a 7,61% spike. This is not a miracle but this is from smart buyers wanting to hedge their portfolios. The Omicron variant is sweeping through the world at a faster pace than the original Covid-19 variant did which is causing serious concern and rumours of more restrictions and even potential lockdowns to come.

The upside this time is not as strong for Peloton but if a couple of major countries were to do short term lockdowns or restrict gyms from operating a 100% increase in stock price is entirely possible.