Peloton (PTON) stock tanked more than 25% on Thursday morning after the connected fitness company reported disappointing Q2 revenue and issued downbeat guidance for the current quarter. The selloff pushed PTON’s standard relative strength index (14-day) down to about 26, indicating deeply oversold conditions that often precede a meaningful rebound.
Still, there’s reason for conservative investors to steer clear of Peloton stock that’s now down more than 35% versus its year-to-date high.
