Peloton Interactive Inc PTON shares are trading higher by 30.6% at $32.12 Monday morning following a report from the Wall Street Journal suggesting the company has drawn interest from potential suitors including Amazon.com, Inc. AMZN about a potential acquisition.
Full Answer
Should you buy peloton before it goes back up?
Peloton has finally announced a fix for some of its treadmills, which were recalled earlier this year after reports of accidents and injuries to users, though they're not yet back on sale.
Should investors be worried about peloton stock?
That's a stellar growth rate, but investors are worried about a slowdown in monthly workouts. Peloton's subscribers pay the same monthly fee regardless of how many times they use their equipment. Therefore, investors should be more focused on customer retention than average workouts, because that's how the financials work.
Who would buy peloton?
Peloton Interactive (NASDAQ: PTON) has been making headlines in recent months as its struggling business is giving rise to conversations about a potential takeover. Some of the companies being suggested as possible suitors for Peloton include Nike, Apple, Amazon, and Sony. Another that has people talking is Walt Disney (NYSE: DIS).
Will Apple, Google, Nike, or Lululemon buy peloton?
Will Apple, Google, Nike, or Lululemon Buy Peloton? Apple, Google, Lululemon, Disney, and Nike may be buyers as the connected fitness maker's market value plunges. Fitness equipment maker Peloton ( PTON) - Get Peloton Interactive, Inc. Class A Report may want a do-over for its past few months.
Why Peloton stocks are going up?
Peloton enjoyed booming demand for its exercise bikes and treadmills during the early stages of the pandemic. Its stock price soared along with its sales.
Is Peloton stock expected to rise?
Stock Price Forecast The 28 analysts offering 12-month price forecasts for Peloton Interactive Inc have a median target of 23.00, with a high estimate of 35.00 and a low estimate of 10.00. The median estimate represents a +64.64% increase from the last price of 13.97.
Is Peloton stock worth buying?
Revenue fell 24% last quarter, but falling sales are not the worst of Peloton's problems. Peloton needs to bring inventory in line with demand and then figure out how to grow from there. These problems will take time to fix, so there should be no rush to buy the stock.
Will Peloton bounce back?
As recently as Mar 29, hard-hit shares in Peloton (NASDAQ:PTON) appeared to be in the middle of a comeback. After hitting new lows during the middle of the month, PTON stock experienced a sharp surge, rising over 50% in a matter of weeks....Avoid Peloton Stock As It Recovers From Its 'Dead Cat Bounce'TickerCompanyCurrent PricePTONPeloton$27.81Apr 5, 2022
Is Peloton in financial trouble?
Peloton, the maker of tech-connected exercise bikes, saw its losses spiral in the first three months of the year, as the popularity it enjoyed during the pandemic faded. Revenue dropped 24% compared to last year, driven by sinking demand for bikes and treadmills, the firm said.
Is Peloton stock overvalued?
Still overvalued Shares of Peloton are trading 80% below their high of $166 and yet the fitness company is overvalued. The expectation is for Peloton to have revenues of $4.5B in FY 2022.
What's going to happen 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.
Does Amazon own Peloton?
Amazon is rumored to be preparing a bid for fitness company Peloton, but the deal would likely be a bad idea for the Seattle-based company.
How much do the Peloton instructors make?
How Much Do Peloton Instructors Make? Although Peloton is not officially disclosing salaries, it is believed that the instructors make $500 to $750 per class. With 10 to 15 classes taught in a week, an instructor could rake in up to $585.000 annually (52 weeks/year * 15 classes/week * 750$).
Is Peloton undervalued?
Wall Street's analysts' consensus price target suggests that Peloton's shares are undervalued, but I disagree. The average sell-side analyst target price for PTON is $47.65, which implies a capital appreciation potential of +78% as compared with the company's last traded share price of $26.70 as of February 2, 2022.
What happens to stock when a company is bought?
If the buyout is an all-cash deal, shares of your stock will disappear from your portfolio at some point following the deal's official closing date and be replaced by the cash value of the shares specified in the buyout. If it is an all-stock deal, the shares will be replaced by shares of the company doing the buying.
Why does Peloton stock keep dropping?
However, pandemic fatigue and reopenings have brought about the opposite problem: abundant supply but low demand. Add to that the current supply chain crisis and the notoriously slow delivery times that are turning many potential buyers off, Peloton's inventory may already be cracking at the seams.
What happened
Shares of Peloton Interactive ( PTON -2.19% ) were popping today on multiple reports that showed the connected fitness company gaining interest as a potential acquisition target.
So what
Peloton shares first jumped in after-market trading on Friday when The Wall Street Journal reported that Amazon had been talking to advisors about a potential deal, and Financial Times also said that day that Nike was considering an offer.
Now what
If Peloton does seek a buyer, it could attract interest from multiple parties as the company has a well-known brand with a cultlike following and is widely recognized as a leader in connected fitness. A tie-up with a company like Apple or Nike would make sense in a lot of ways.
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Why did Peloton get sued?
The new high for Peloton shares comes amid same-day reports that the firm issued a recall on pedals for about 27,000 bikes due to safety concerns, and that it was sued for patent infringement.
When did Peloton go public?
Launched with the help of a crowdsourced Kickstarter campaign in 2013, Peloton went public on the Nasdaq exchange in September of last year and managed to keep its stock price afloat through an advertising gaffe and the start of the pandemic.
NASDAQ: PTON
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What happened
Shares of Peloton Interactive ( PTON -0.39% ) were soaring Tuesday for the second day in a row.
So what
The biggest piece of news for the company seemed to be that co-founder John Foley would step down from the CEO position and take the role of executive chair, while William Lynch would exit his role as company president. The company named Barry McCarthy as its new CEO and president.
Now what
Investors seemed to be willing to overlook the weak guidance as the company is putting its turnaround plan in place. The cost cuts are necessary, and the business should return to profitability once it trims costs, as the subscription side of the business is solidly profitable.
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What happened
Shares of Peloton Interactive (NASDAQ: PTON) went on a run yesterday, rising 15.5% after the exercise bike and treadmill maker announced it would sell $1 billion worth of stock to raise cash to help offset the mammoth $1.4 billion in cash it has burnt over the past year.
So what
Yesterday's run-up was a curious reaction from investors -- both to the reminder that Peloton remains a deeply and increasingly unprofitable company and to the prospect of seeing their ownership stakes in the stock diluted by the share issuance.
Now what
Granted, a Peloton spokesperson assured the Journal that Peloton was right the first time, that it does not in fact need cash, and that it's only selling shares to make sure it has the cash available to pay for "the best strategic decisions for its medium and long-term growth opportunities." But the numbers tell a different story.
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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 +5.1% 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.”
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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