Peloton's stock is crashing amid a slew of bad news. The company's expenses rose too quickly while demand leveled off. Peloton must recalibrate the business on a sustainable path.
Should you buy peloton before it goes back up?
21 hours ago · Over the last five years, Peloton has increased sales of connected fitness products 17-fold, from $184 million in 2017, to $3.2 billion in …
Why is everyone talking about peloton stock?
Nov 08, 2021 · What happened. Shares of exercise bike and treadmill maker Peloton Interactive ( PTON -2.08% ) got destroyed on Friday, plunging more than 35% in a day after beating earnings and revenues for ...
Who would buy peloton?
Nov 09, 2021 · Peloton Interactive ( PTON -5.79% ) reported fiscal 2022 first-quarter earnings after the market closed on Nov. 4. The results disappointed investors, and the stock price crashed by over 36% on ...
Why you should buy the dip in peloton?
Nov 05, 2021 · Why did the Peloton stock drop? Shares were down more than 30% on Friday after it lowered annual sales forecasts by close to $1 billion. Peloton Stock is Crashing as People Head Back to the Gym ...
Why is Peloton stock going down?
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
Why is Peloton doing so badly?
Citing internal documents it has obtained from Peloton, CNBC reports that demand for Peloton's bikes and treadmills is evaporating so quickly that the company has decided to "temporarily" halt production.Jan 20, 2022
What is happening to Peloton?
Peloton will lay off 2,800 employees and replace its CEO, cofounder John Foley. It's a stunning turnaround for a company that became a Wall Street darling during the pandemic. But increased competition and the return to gyms has hurt Peloton's business in recent months.Feb 12, 2022
Is Peloton struggling?
Declining demand for home fitness has caused Peloton to halt production, and shed $40B in value in the last year. One reason Peloton's equipment is so popular is its ability to make subscribers sweat. Now it seems the connected fitness pioneer is the one sweating.Jan 24, 2022
Is Peloton company in trouble?
US-based fitness company Peloton Interactive, which saw its sales and subscribers vault during the height of COVID-19 in 2020, is passing through turbulence. Its CEO is being replaced, staff retrenched, and expansion plans cut. Even the possibility of sale of the business is being weighed.Feb 10, 2022
Is Peloton going to last?
Peloton is temporarily halting production of its connected fitness products as consumer demand wanes and the company looks to control costs, according to internal documents obtained by CNBC. Peloton plans to pause Bike production for two months, from February to March, the documents show.Jan 20, 2022
What is Peloton wife?
The interesting part is, for many people, “Monica Ruiz” and “The Peloton Wife” became one-and-the-same and not just an actress playing a part. Even though the whole world wanted to hear from the “Peloton Wife,” Monica only granted one interview on the topic with The Today Show.Dec 18, 2020
Is Peloton being sold?
Peloton Shares Fall After New CEO Says Company Won't Be Sold In The 'Foreseeable Future'Feb 14, 2022
What happened
Shares of exercise bike and treadmill maker Peloton Interactive ( PTON 4.82% ) got destroyed on Friday, plunging more than 35% in a day after beating earnings and revenues for fiscal Q1 2022 -- but giving weak guidance for the rest of this year.
So what
Wall Street didn't pull any punches Friday, with StreetInsider.com for example recording no fewer than five separate analyst downgrades and 10 price target reductions on the stock. Today, TheFly.com is reporting one more downgrade -- from Argus -- and one final price target reduction -- from Roth Capital -- straggling in.
NASDAQ: PTON
Curiously, though, today's news isn't even as bad as what we saw back on Friday.
Now what
It's also worth pointing out that not everyone on Wall Street is panicking. Although Peloton's numbers look truly awful, with net losses of $634 million racked up over the past year and nearly $1.4 billion in negative free cash flow according to data from S&P Global Market Intelligence, Needham & Co.
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Management lowered expectations for the rest of the year after consumer interest fell
A Fool since 2019, and a graduate of Cal State LA with a B.S. in Finance and M.A. in Economics. Parkev is an adjunct professor of Finance and enjoys reading about financial and economic history. You'll often find him writing about stocks in the consumer goods and technology sectors.
Peloton faces trouble as economies reopen
A few long months ago, Peloton management gave investors guidance on what to expect from the company in the fiscal year 2022.
Did Peloton's stock get oversold?
It's no surprise that the stock sold off after the company announced first-quarter earnings and management lowered guidance for the year. Still, was a 36% drop justified?
What happened
The news at Peloton Interactive ( PTON -5.64% ), a one-time darling of the pandemic trade, went from bad to worse on Thursday, as media reports described first a planned layoff of 41% of the company's sales and marketing staff -- and then a shutdown of production.
So what
Yesterday, reports from Business Insider of a Peloton plan to lay off 41% of its sales and marketing staff had no immediate impact on Peloton's stock price -- to the contrary, the shares gained more than 5%, presumably on hopes that layoffs would cut costs and boost profits at the exercise bike maker.
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