Peloton surges after David Einhornm says the stock is undervalued

Investing.com-- Shares of exercise bike maker Peloton Interactive Inc (NASDAQ:PTON) rose sharply on Wednesday after reports said Greenlight Capital head David Einhorn said shares of the company were significantly undervalued.

Peloton surged nearly 11% to $6.270, and was mildly positive in aftermarket trade.

CNBC reported that Einhorn had touted the stock at the Robin Hood Investors Conference, although he did not provide a target price.

Einhorn was also reportedly riding a Peloton bike while making his statement, the report said.

Greenlight in August revealed it had bought 6.8 million shares in Peloton, which had also sent its shares soaring. But the stock was trading up just around 1% so far in 2024. 

Peloton said earlier this week it was partnering with supermarket chain Costco (NASDAQ:COST) to sell some of its models.

The company had in August announced that it was preparing to focus on profitability over growth after completing a massive debt refinancing that pushed forward its debt commitments.