What is the Peloton indoor cycling machine like?
08-07-23, 11:03 AM
#26
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I haven't taken a deep dive into Peloton's financial issues, but I'm having a hard time understanding why it wouldn't be a complete gold mine. The cost of creating content should be minimal. The subscriptions should be all profit, and every new subscription goes right to the bottom line because there are no marginal costs associated with adding new subscribers. What am I missing?
Peloton was a start-up that generated a lot of buzz around their IPO in late 2019. The ensuing pandemic that started shortly after the IPO caused wild speculation as people sought out indoor home workout equipment - and their stock price went through the roof. The company struggled to keep up with rapid growth and 2021 their stock price crashed. They've now got a new CEO.
As you note, they have a huge subscriber base and have already invested in the tech and studio spaces to generate content. It's possible that Peloton goes belly up, pulls the plug on content and there's a bunch of dead bikes out there - but considering the number of subscribers and brand recognition I think being sold to another company seems like a more likely outcome.
08-07-23, 11:39 AM
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I don't think you're missing anything.
Peloton was a start-up that generated a lot of buzz around their IPO in late 2019. The ensuing pandemic that started shortly after the IPO caused wild speculation as people sought out indoor home workout equipment - and their stock price went through the roof. The company struggled to keep up with rapid growth and 2021 their stock price crashed. They've now got a new CEO.
As you note, they have a huge subscriber base and have already invested in the tech and studio spaces to generate content. It's possible that Peloton goes belly up, pulls the plug on content and there's a bunch of dead bikes out there - but considering the number of subscribers and brand recognition I think being sold to another company seems like a more likely outcome.
Peloton was a start-up that generated a lot of buzz around their IPO in late 2019. The ensuing pandemic that started shortly after the IPO caused wild speculation as people sought out indoor home workout equipment - and their stock price went through the roof. The company struggled to keep up with rapid growth and 2021 their stock price crashed. They've now got a new CEO.
As you note, they have a huge subscriber base and have already invested in the tech and studio spaces to generate content. It's possible that Peloton goes belly up, pulls the plug on content and there's a bunch of dead bikes out there - but considering the number of subscribers and brand recognition I think being sold to another company seems like a more likely outcome.
08-15-23, 10:46 AM
#28
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There is a lot of pressure on management to do something, anything if the stock price stays at very low levels. Investors typically would prefer liquidation in that situation. If they bought a stock because it was growing, they are looking for growth, not income. I imagine vulture capitalists are circling at this point.
When I win the lottery, I'll buy it just so I can change the name to something more representative of what it actually is. As a public service.
When I win the lottery, I'll buy it just so I can change the name to something more representative of what it actually is. As a public service.
