by Mariah Renner
Published 3 years ago
Updated 2 years ago
Peloton went public in September 2019 with a roughly $8 billion valuation. The company didn't start out as profitable—but surging demand during pandemic lockdowns, starting in April 2020, jumpstarted growth for the company. But just a year later, as demand slowed, Peloton's losses took hold.Jan 21, 2022
Why did Peloton stock drop so much?
Peloton stock has been dropping because of its plans to optimize production levels and lower-than-expected subscriptions for Q2 FY 2022.Feb 3, 2022
What was the downfall of Peloton?
Peloton's stock plummeted following its 2019 holiday ad
Public outrage over the ad sent Peloton's stock plunging 9%, wiping out $942 million in market value in a single day. But Peloton stood by the commercial, issuing a statement saying it was "disappointed" by how people had "misinterpreted" the ad.Feb 12, 2022
What is happening with Peloton?
The at-home fitness company saw a 172% spike in sales over the course of 2020, buoyed by the pandemic forcing wealthy gym-goers to stay home. Peloton's glory days are definitely gone. Yesterday, CNBC reported that the company is temporarily halting production of its bikes, and Peloton shares promptly plunged 24%.Jan 21, 2022
Is Peloton losing popularity?
Peloton has seen a slump in demand for its fitness classes and equipment as people venture out of their houses to hit gyms again. "During the pandemic, there was too little supply to meet the growing demand.7 days ago
Is Peloton in financial trouble?
The company also said it lost $439 million in its most recent quarter, as sales grew just 6 percent from a year earlier. Peloton lowered its full-year forecasts for revenue, subscriptions and profitability. The company also pulled the plug on a planned factory in Ohio.Feb 8, 2022
Who is Peloton's biggest competitor?
Peloton's top competitors include MIRROR, Equinox Fitness, SoulCycle and Bitmovin. Peloton offers cloud-based live streaming of instructional cycling exercise content on a multi-touch console equipped with social elements. MIRROR (also known as Curiouser Products) is a company developing a connected fitness system.
Is Peloton being sold?
Peloton Shares Fall After New CEO Says Company Won't Be Sold In The 'Foreseeable Future'Feb 14, 2022
Why are people not buying Peloton?
Peloton has essentially guessed wrong about how many people would be buying its products, after so much demand was pulled forward during the coronavirus pandemic. It's now left with thousands of cycles and treadmills sitting in warehouses or on cargo ships, and it needs to reset its inventory levels.Jan 20, 2022
What is Peloton wife?
It's been a year since the infamous “Peloton Wife” commercial went viral. This week on The Clip Out, we sit down with the star of that ad campaign, Monica Ruiz, for an exclusive interview. Her first in almost a year!Dec 18, 2020
Is Echelon as good as Peloton?
Deciding between Peloton or Echelon often comes down to budget, premium features, and instructor preferences. If you're looking for a starter bike that is affordable, Echelon might be the best choice, but if budget is not a factor, the Peloton Bike+ has some pretty amazing features worth considering.Feb 18, 2022
Why is Peloton laying off employees?
The global pandemic's effect on consumer demand and supply chains contributed to Peloton's decision to lay off many of its employees. So Peloton is likely not the only one having to let so many of its workers go due to COVID-19. At least 500 full-time employees from a single work location are losing their jobs.Feb 16, 2022
Disappointing Fiscal Fourth Quarter
Peloton’s results for the June-ending quarter were not all terrible — but they marked a big slowdown from the previous quarter.
Pallid First Quarter Outlook
Peloton PTON -2.7% forecasts a paltry 5.5% revenue increase for the September ending quarter to $800 million — over $200 million lower than analysts expected, according to CNBC — and depressed near-term profits.
Treadmill Recall
Peloton stock has fallen since a report in April that its treadmill was unsafe. As I wrote in May, it announced May 5 that after initially stonewalling a regulatory order to pull them off the market, Peloton was recalling and temporarily halting sales of its treadmills.
Falling Prices and Rising Costs
Trends are working against Peloton’s revenue and profit growth. As CNBC noted, Peloton is slashing by 20% the price of its Bike — a move that surprised analysts.
Dodgy Accounting
Auditors uncovered a flaw in Peloton’s books. As CNBC wrote, “An audit of fiscal 2021, which ended on June 30, discovered a ‘material weakness’ in the internal controls that govern Peloton’s financial reporting [for inventory]. It will not, however, result in the restatement of any of its past results, the company said.”
