Peloton stock hits all-time low as pressure mounts ahead of earnings
In this illustration, the Peloton Interactive logo is displayed on the smartphone screen.
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Peloton Interactive Shares fell to all-time lows on Friday as investors lost hope that the connected fitness equipment maker could turn around and turn a profit, even under one chief executive. new practice.
Shares at one point fell more than 13%, amid a broader sell-off, hitting an all-time low of $14.70. This is also much lower than Peloton’s IPO price of $29. The stock then offset some of those losses to end trading down 8%.
Peloton is set to report its quarterly results, now with CEO Barry McCarthy led, on Tuesday morning.
Its market capitalization fell from about $50 billion early last year to less than $5 billion on Friday morning.
On Thursday night, The Wall Street Journal reported that Peloton is targeting potential investors, consists of industry players and private equity firms, which hold about 15% to 20% equity in their businesses. The new funding could help Peloton as it tries to turn around capital, but there’s no guarantee such a deal will be successful, the Journal said.
A spokesman for Peloton declined to comment.
“Despite a vote of confidence … we don’t find this overly encouraging for stock holders,” said Gordon Haskett analyst Don Bilson. “Movements like this are rarely made from strong positions. Desperation is more true.”
The company operates Blackwells Capital is increasing the pressure on Peloton to sell itself, recently argued that the changes introduced so far under McCarthy have not been enough. Blackwells argued that a better owner could Amazon or Netflix.
In an effort to win new customers and make more money from existing ones, Peloton recently Discount on Bike, Bike + and Tread machineswhile they plan to increase their monthly full access subscription fee next month.
BMO Capital Markets analyst Simeon Siegel said uncertainty has been “a real constant” at Peloton in recent months.
From early success to ongoing strategic experiments, the company has yet to find a sense of normalcy that can smooth out periodic volatility, he said.
Shares of Peloton are down more than 55% this year.