What happened
Shares of Peloton Interactive (NASDAQ: PTON) surged 9% to a record closing high of $83.67 on Tuesday, continuing the growth stock’s tremendous ascent in recent days.
So what
Peloton’s gains were driven in part by the introduction of its new Health and Wellness Advisory Council on Tuesday. The group consists of respected medical experts in fields including neurology, neuroscience, cardiovascular medicine, and cardiopulmonary exercise. The council will help to guide Peloton’s product development as a means to “positively impact the physical, mental, and emotional wellbeing” of Peloton’s members.
A woman running with futuristic hologram effect.
Expert doctors and scientists will use cutting-edge science to direct Peloton’s new product creations. Image source: Peloton.
“With the addition of this esteemed Health and Wellness Advisory Council, which includes some of the best minds in medicine, we can leverage scientific research and medical expertise to help us better serve our community through our content, products, and platform,” Peloton President William Lynch said in a press release.
Now what
Peloton’s exercise machines are priced at a premium to that of its competitors. This helps to make its brand aspirational, which no doubt boosts sales. But if Peloton is to remain a premium brand, it must remain on the cutting edge of exercise science. Peloton knows this, and investors rightly applauded its new science-focused initiative.
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Peloton Interactive. The Motley Fool has a disclosure policy.
Why Peloton Stock Leapt to a New All-Time Today was originally published by The Motley Fool
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