Better Comeback Stock: Alibaba vs. Peloton

From Yahoo Finance:

Alibaba Group and Peloton Interactive have seen significant drops in their stock prices due to various factors. Alibaba’s growth was hindered by regulatory issues in China and loss of key customers, while Peloton struggled as gym re-openings and competitors affected its sales. Investors are now wondering if either stock is worth considering for a potential turnaround.

Alibaba’s growth has slowed due to regulatory pressures and macro challenges in China. Despite this, the company is expanding its overseas e-commerce business and Cainiao logistics division to offset the slowdown. Analysts expect modest revenue growth and improved net income, making the stock look undervalued at its current price.

Peloton’s business faced challenges as gyms reopened and cheaper competitors entered the market. The company reduced prices, outsourced production, and expanded subscription services to boost margins. While analysts predict positive adjusted EBITDA in 2025, Peloton may struggle to maintain growth as subscriber numbers decline.

Alibaba seems to be the stronger choice for investment, despite recent setbacks. The company’s focus on overseas expansion and logistics services could drive future growth. Peloton, although working to improve margins, faces uncertainty due to declining subscriber numbers. Investors should carefully consider the risks and potential rewards before making a decision.



Read more at Yahoo Finance: Better Comeback Stock: Alibaba vs. Peloton