Price Forecast:

Bullish Case: Continued expansion initiatives and strong momentum among Gen Z are driving membership growth. High demand for fitness services can push PLNT revenues higher, supported by effective marketing and operational strategies.

Bearish Case: Recent safety incidents could damage Planet Fitness's brand reputation, affecting membership retention rates. Leadership uncertainties also pose risks that could dampen investor confidence and pressure stock prices.

Potential Outcomes:

• 70%: Continued expansion and member growth boost revenues in Q1 2025.
• 20%: Negative publicity from safety incidents decreases membership retention.
• 10%: Leadership transition creates uncertainty, impacting stock performance negatively.

Trading Oracle: Consider a bullish strategy by entering a debit spread: buy $105 calls and sell $110 calls with a target execution in early January. This leverages potential upward movement in PLNT and utilizes high implied volatility for profit maximization, aiming for a bullish market upside.

December 18, 2024