(Bloomberg) -- Peloton Interactive Inc. shares are on track to wipe out a strong start to the year, delivering a small win to investors betting against the company and its roughly $2,000 stationary bikes.
Shares of the New York-based company fell as much as 5.1% Wednesday and are on pace to erase what topped out as a $2.20 gain so far in 2020. The stock is now up less than 2% from a September IPO, compared to a the S&P 500's more than 9% gain to fresh record highs.
Short bets against the company have remained steady over the last six weeks, with more than 70% of shares available for trading currently sold short, data compiled by financial analytics firm S3 Partners show. Citron Capital LLC reiterated its short stance on shares Monday with a price target of just $5.
Second-quarter earnings are estimated to come some time next month. Canaccord analysts wrote in an overnight research note that a “robust holiday and New Year's resolution selling season should set the tone early in the year.”
To contact the reporter on this story: Bailey Lipschultz in New York at blipschultz@bloomberg.net
To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Steven Fromm
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