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
Will Peloton stock ever recover?
Whatever happens, Peloton will probably continue to draw lots of attention, and the stock is likely to stay volatile in 2022.Feb 1, 2022
Is Peloton still losing money?
Peloton reported wider-than-expected losses for fiscal Q2 and slashed full-year revenue targets. The connected fitness platform reported a net loss $1.39 per share, or $439.4 million. Total revenue grew roughly 6% year over year to $1.13 billion. Peloton stock has been on the wane after having a monster 2020.3 days ago
What happens to my stock if Peloton is sold?
Peloton investors can buy the same number of shares and hold them for 30 days. On the 31st day, the original tax lot of Peloton shares—the stock you bought at higher prices—can be sold. Anyone who does that should be able to claim a loss on their tax returns.Nov 24, 2021
Why did Peloton stock go up?
Peloton's stock is in flux. 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.Feb 16, 2022
Is Peloton still popular?
There is no doubt, Peloton is popular. The service was only introduced in 2014, but quickly grew and went public in 2019. Peloton further benefitted from the COVID-19 pandemic as workout warrior flocked to home-based workouts. We expect that trend to continue, even in a post-pandemic world.Mar 2, 2022
What is Pelotons lost worth?
Peloton has lost nearly $40bn in market cap value in the past year.Jan 24, 2022
Why does Peloton not make a profit?
Peloton just suffered its worst day as a publicly traded company The company said that it will likely lose more money than it had expected in fiscal year 2022. Peloton has thrived during the pandemic, driven by people who set up places to work out at home.Nov 5, 2021
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.”
