From their initial public offering in September 2019 to their peak in January 2021, shares of Peloton Interactive ( PTON 2.69% ) skyrocketed by 550%. That monster run would've turned a $155,000 initial investment into $1 million at its all-time high in about 16 months.
But since that peak, this consumer discretionary stock has lost about 98% of its value. Now trading at a price-to-sales ratio of 0.5, some investors might view this business as a buying opportunity that's hard to pass up.
But could Peloton stock help you become a millionaire one day from today's levels? The most optimistic scenario Let's first consider the most optimistic scenario for Peloton. There's no denying that in order to skyrocket in value again, the company would need to return to rapid growth first and foremost. From its fiscal 2017 through its fiscal 2021 (which ended June 30, 2021), the company's revenues rose about 18-fold, thanks to heightened consumer interest in home workouts.
If there's a return to levels even remotely resembling this type of growth, then the stock price should follow. Moreover, Peloton was close to achieving profitability during the depths of the pandemic, and it posted positive free cash flow in fiscal 2020. If the business becomes financially sound from a bottom-line perspective, investor enthusiasm will soar.
Today, its market cap is around $1.38 billion. Consistent fast revenue growth, coupled with expanding profitability, could maybe get Peloton back to its all-time-high .
