Cari Gundee rides her Peloton exercise bike at her home on April 06, 2020 in San Anselmo, California.
Ezra Shaw | Getty Images
Peloton shares tumbled Tuesday after UBS downgraded the stock to sell from neutral, saying an incredible runup over the past year leaves more downside risk for investors from here.
Shares were recently down nearly 7%, having rallied about 370% from a year ago.
“Given recent market activity, we think investors need to be wary of the rising trend of bull market optimism in a handful of businesses that have been either Covid-19 ‘beneficiaries’ and/or have come to the public markets in the last 6-18 months,” UBS analyst Eric Sheridan said in a note to clients.