When Peloton said it would halt production of bikes and treadmills due to soft demand, PTON stock cratered. Peloton is a one-trick pony. It enjoyed a tremendously good run-up, thanks to a lockdown of 2020 and 2021 driving demand.
Peloton does not have other exercise products to lean back on. With sales plunging, the current user base may realize Peloton bikes are a fad that is fading. Similarly, investors should avoid past fad stocks that already faded.
GoPro (GPRO) action cameras appealed to the active customer. With the lockdown, outdoor activity and travel slowed. The stock rallied from around $8.50 to top $12.00 in Nov. 2021. The pull-back may continue.
Groupon (GRPN) is a coupon offering for swarms of people. Businesses could not keep up with strong demand in short periods. Unhappy customers did not lead to continued demand for businesses. Avoid GRPN stock.
In the 3D printing space, 3D Systems (DDD) and Stratasys (SSYS) will not recover. The fad for 3D printing ended nearly a decade ago. It rose again in the last year, probably for one last time.
Some of the metaverse stocks are a fad. Investors should be wary of Vuzi (VUZI). The company has yet to produce a headset for the virtual reality space.
