How To Buy Peloton Stock – Financial Treat.In the early days of the pandemic, Peloton was a top stock for working out at home. But since peaking above $160 in late 2020, Peloton’s shares have plummeted to pre-Covid levels.
Depending on what kind of investor you are, you may be willing to charge PTON or give up faster than Carrie Bradshaw. But if the company’s new leadership makes you think the stock could be all the rage again, here’s everything you need to know about buying Peloton stock.
If you don’t have a brokerage account, you must open one to buy Peloton stock. Look for providers with low minimum accounts and no transaction fees. If you’re not sure where to start, check out our list of the best online brokers and investing apps.
When reviewing a broker, pay attention to the types of accounts the broker offers. While most people have basic accounts like regular taxable investment accounts and individual retirement accounts (IRAs), startup brokers often lack 529 accounts to save on education.
Before investing in any stock, you need to do your research. You only want to invest your money in a company that you are comfortable with with its operations, finances, goals and risks.
A good source for your research is the annual and quarterly reports of publicly traded companies in the US such as Peloton. Securities and Exchange Commission (SEC). These documents can be found on the company’s investor relations website or by searching the SEC’s database.
No matter how much you love Cody Rigsby, you’re probably not ready to donate your entire life savings to Peloton. Here’s how to find out how much you can actually afford to invest in PTON:
Once you decide how much to invest, you can buy Peloton stock — you can do this by placing an order with your broker. To do so, simply log into your account and enter Peloton’s ticker symbol – PTON – and the number of shares you wish to buy or the dollar amount you wish to invest.
Your broker may let you place both market and limit orders at the same time. As long as it is normal trading hours, market orders are executed immediately at the current price. Conversely, a limit order will only be executed when the stock reaches the price you set. Limit orders can be useful when you expect a stock to experience volatility and you only want to buy when the price reaches a certain amount. Otherwise, a market order may see a significant change between the stock price when the order was executed and the time the order was actually executed.
Since Peloton is traded on the Nasdaq exchange, the easiest time to shop is between 9:30am and 4:30pm. Eastern Time, Monday through Friday. Your broker may also grant you additional trading hours before and after the market.
Whether you’re a long-term investor or plan to hold your stock for a few days or weeks, you’ll eventually need to sell your Peloton stock.
Selling your stock is easy. Just go to the trading platform and enter the number of shares or dollar amount you wish to sell. As with buying stocks, you can choose to sell stocks via market or limit orders. Again, your preference may come down to how volatile you expect the stock to be, or whether you want it to hit a certain threshold before selling.
If you’re looking to make a decent profit, you should talk to a tax professional to develop a strategy for handling your capital gains tax.
Investing in individual stocks like Peloton can be attractive because they allow you to put money into a brand name and capitalize on its growth. But as PTON’s recent performance has shown, this can be a risky strategy, as individual stocks often experience dramatic price swings.
For this reason, experts recommend that most people invest in low-cost, diversified mutual funds and exchange-traded funds (ETFs). Fortunately, PTON is easy to find in many funds. According to ETF.com, there are 100 ETFs that include it in their offerings.
On average, these ETFs allocate 0.33% of Peloton’s holdings, but for those seeking more exposure, the company accounts for nearly 4% of some funds.