When you think of stay-at-home concept stocks, what names come to mind? On November 13, PTON's stock price plummeted 7%, and there was no bad news for Peloton.

When you think of stay-at-home concept stocks , what names come to mind? Peloton Interactive (NASDAQ: PTON ) may be high on your list. After all, much of PTON's stock price rise is due to the pandemic-induced trend of working out at home.

But a strange thing happened recently. On November 13, PTON's stock price plummeted 7%, and there was no bad news for Peloton. Frankly, the company's stock price has been declining since mid-October.

Is this a pullback worth buying, or will the stock continue to fall? Plus, what caused the sell-off on November 13th? We'll address these burning questions and more, starting with an analysis of Peleton's recent price action .

A closer look at PTON stock

I think the problem we are facing right now is "too much, too fast." For example, PTON shares hit a 52-week high of $139.75 on October 15, after experiencing a rapid but unsustainable rise.

Think about it. So far this year, PTON stock has soared from $17.70 to nearly $140 in just a few months. Of course, the emergence of coronavirus means more people may be buying home exercise equipment.

But that doesn't mean the stock price should rise vertically like that.

Recently, the stock price has not been so high. On November 13, the company’s stock price fell to $100. Value-seekers should appreciate Peleton's low price point and consider taking advantage of it.

Vaccine 'Fear'

For investors, the words "vaccine" and "fear" are often disconnected, as it seems like every stock should rise when a COVID-19 vaccine becomes available. Right?

But not necessarily. Stocks classified as stay-at-home may not benefit from the discovery of a COVID-19 vaccine. In fact, they may fall in the short term.

Peleton is a good example. Not long ago, drugmaker Pfizer (NYSE: PFE) and Germany-based BioNTech SE (NASDAQ: BNTX) announced that they had obtained successful data from their Phase 3 study of the new coronavirus candidate vaccine BNT162b2, which cheered the market.

However, despite the overall good mood in the trading community, some holders of Peleton stock have clearly lost their resolve. Maybe they sold the stock because they were worried that people would stop buying home fitness equipment.

To be more precise, I don't think investors are actually worried about a complete halt in home fitness equipment sales. In fact, the concern is a slowdown in an overheated trend.

Looking for a Steady Pace

It's fair to say that both Peleton and its stock have exceeded their own expectations this year.

Peloton reported a fourth-quarter net profit of $0.27 per share, significantly exceeding analysts' average estimate of $0.10.

In addition, Peloton’s quarterly sales increased an eye-popping 172% year-over-year to $607.1 million.

Like a cyclist starting a race at full speed, Peloton can't keep growing at this rate forever. Therefore, a cooling-off period is necessary and healthy for PTON stock.

's encouraging vaccine development became an excuse for the company's shareholders to take profits after the stock price surged. Even so, Peloton still expects fiscal 2021 revenue to be between $3.5 billion and $3.65 billion.

In other words, Peloton clearly doesn't think sales of home exercise equipment will slow down significantly, vaccine or no vaccine.

Conclusion

PTON stock’s decline is actually healthy, even though it is fueled by irrational fears about vaccines.

Now, you can hold stocks at a more reasonable price and look forward to a stable marathon rather than a short-term sprint.

Author of this article: David Moadel, US Stock Research Agency (public account: meigushe) aims to help Chinese investors understand the world, focusing on reporting on US technology stocks and Chinese concept stocks. Friends who are interested in US stocks should follow us