Should I Buy Garmin (GRMN)? Finance YouTuber Analysis

Hoium suggests Garmin as a natural acquirer for Peloton, citing Garmin's strong financial position ($2.5 billion cash, $40 billion market cap) and existing subscription services. He believes acquiring Peloton for around $4 billion would allow Garmin to integrate Peloton's content and expand its user base by offering a higher-value, bundled subscription to its millions of existing watch users, creating significant synergies.

“I think Garmin is a natural buyer to Pelaton. They're already moving into some of the services that Pelaton's offering today. It just makes sense to pull those users into a bigger ecosystem with Garmin and Pelaton.” — ▶ 6:20

Garmin has pulled back 26% from recent highs, making its valuation more attractive. While its current P/E of 24 for 12% growth is still a bit high, the analyst is interested if the P/E drops to 14-18. Garmin has demonstrated resilience against competition like Apple and has strong niche businesses in aviation and marine, with high product margins. The company is well-positioned for growth in connected health, the kids' market, and leveraging AI with its extensive biometric data collection.

“If this stock continues to fall, if we can start buying shares at a price to earnings multiple of 18, 16, even like 14, 15, that would be a real opportunity for a company like Garmin.” — ▶ 20:40