There's an old saying in investing: one person's trash is another person's treasure. That might be playing out right now with Peloton Interactive (PTON).

David Einhorn, the famous hedge fund manager, has thrown in the towel on the connected fitness company. His fund, DME Capital Management, completely exited its Peloton position in the second quarter. But at the same time, a member of Congress has been buying shares.

Einhorn's Exit

DME Capital Management, which is the successor to Einhorn's Greenlight Capital, filed its second-quarter 13F recently, revealing its portfolio as of June 30, 2026. The fund ended the quarter with 46 holdings and about $3.9 billion in assets.

In the second quarter, DME Capital sold 10,113,940 Peloton shares, completely wiping out its position. That stake was worth $43.4 million at the end of the first quarter, representing about 1.4% of the fund at the time.

Einhorn's relationship with Peloton has been a rollercoaster. He first bought the stock in 2024, and he was so bullish that he famously rode a Peloton bike on stage at an investment conference, arguing the company was undervalued. He pointed to the company's transition, turnaround plan, and new management as reasons for optimism, suggesting the stock could rise if the company focused on cutting costs and growing EBITDA.

But the love affair soured. DME Capital cut its position by 52% in the first quarter of 2025 and by more than 90% in the second quarter of 2025. Then, in a surprising twist, the fund increased its position by 4,004% in the fourth quarter of 2025, going from 246,460 shares to over 10 million shares.

Now, with the complete exit, it seems Einhorn is done. While it's possible he could buy again in the future, it's less likely after this decisive move. For investors, that could be a bearish signal.

A Congresswoman Steps In

While Einhorn is out, Rep. Maria Elvira Salazar (R-Fla.) is in. She disclosed buying between $2,000 and $30,000 worth of Peloton shares on March 19, 2026, according to the MarketDash Government Trades page.

Salazar's purchase is notable because she bought no stocks in 2025. But she's not new to trading. Since 2022, she has made over 100 stock transactions totaling more than $8.5 million, according to data from Quiver Quantitative.

Peloton's Financial Reality

Peloton reported its fourth-quarter financials earlier this month. The company beat analyst estimates for revenue, but earnings per share of 13 cents came in line with estimates.

However, the full-year guidance for revenue of $2.3 billion to $2.4 billion came in below the $2.44 billion reported in the prior full fiscal year. The company also said connected fitness churn was higher in the quarter at 2.2%, up from 1.1% previously, and it forecast losing connected fitness subscribers in the first quarter.

Once viewed as a potential turnaround story, Peloton now looks like it could continue to slide. Salazar might want to consider selling, unless she's also betting on a turnaround.

Stock Price Action

Peloton's stock trades at $5.36 at the time of writing, versus a 52-week trading range of $3.65 to $9.20. Its shares are down 28.6% over the last 52 weeks.

So, who's right? Einhorn, who saw the writing on the wall, or Salazar, who might be seeing a bargain? Only time will tell. But for now, the smart money and the political money are on opposite sides of this trade.