What's happening with 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.
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.
Will Peloton stock ever go back up?
Peloton's stock is in flux. Peloton Interactive (PTON -9.17%) has been quite the story, not only this year, but since it went public in 2019. Its sales skyrocketed when the pandemic started, but now that more people are returning to their prior fitness habits, the company can't keep up with its earlier pace.
Why has Peloton failed?
News yesterday that Peloton will halt production of its bikes and treadmills because of falling demand signaled the latest crisis for the fitness equipment maker. According to CNBC, “the company said in a confidential presentation dated Jan.
Is Peloton losing popularity?
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. The company said in a confidential presentation dated Jan.
Is Peloton going to survive?
More concerning to investors was Peloton's stock dropping 76 percent in 2021 as people started emerging from pandemic lockdowns and the demand for new bikes waned. According to this week's earnings report, the company is still slowly growing its subscriber base, and its churn rate is low.
Would Amazon buy Peloton?
An acquisition of Peloton is likely to be Amazon's largest ever after the $13.7bn purchase of Whole Foods in 2017. I would suggest that Peloton could fetch something around the $18bn level. The company already has $1bn of cash on hand, with $470m of marketable securities.
Will Peloton stock go up 2022?
Peloton's top line is guided to decline by -7% YoY in fiscal 2022 as per the mid-point of the company's management guidance.
Why is PTON so low?
Why shares have been hammered. The main reason for Peloton stock's decline this year has been a dramatic deceleration in the company's growth. In the company's first quarter of fiscal 2022 (Peloton's most recently reported quarter), revenue grew just 6%. This compares to 232% revenue growth in the year-ago period.
What is the Peloton scandal?
Peloton quickly fired back with its own parody ad, starring Mr. Big actor Chris Noth, in which he ended up living and touted the benefits of cardio exercise. But the rebuttal backfired when sexual assault allegations against Noth surfaced, and Peloton pulled its video from all social media accounts.
Does Peloton have a future?
The work-from-home bounce is over, but Peloton's core business looks better than ever. Peloton Interactive (PTON -2.24%) stock has gotten hammered in 2021, losing about a third of its value as growth slows and investors sell off stocks that benefited from the work-from-home trend.
Who got fired from Peloton?
Instructor Irene Scholz announced her departure in May of 2021, and Marina Andresen left in December of 2021 after only joining Peloton that September. Prior to that, there had only been two instructor departures since 2019: Oliver Lee and Jennifer Jacobs.
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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Why did Peloton cut the price of its bike?
This year, Peloton had to recall its treadmills after reports of injuries and death. After this, Peloton cut the price of its bike to boost sales , which was interpreted as a sign of slower growth by many traders.
Is Peloton stock a rich stock?
Meanwhile, Peloton stock continues to trade at a rather rich valuation despite the huge pullback in 2021. Analysts expect that the company will report a loss of $2.17 per share in fiscal 2022 and a loss of $0.52 per share in fiscal 2023. It should be noted that earnings estimates have moved lower in recent months, and analysts will have to adjust their estimates after the disappointing quarterly report.
Is Peloton cut in full year guidance bearish?
The cut in full-year guidance highlights the problem with growth. The situation with coronavirus stabilized, and potential customers look ready to choose fitness options outside their homes, which is bearish for Peloton.
Is Peloton stock down?
Peloton stock is down by about 65% from its peak, which may attract speculative traders. However, traders have to keep in mind that the story of fast growth looks broken, which is usually very bearish for momentum-dependent stocks like Peloton. At this point, it looks that the company will have to come up with positive catalysts to break the current downside trend of its shares.
