PELOTON INTERACTIVE: Revenue up 12% to $173 million

Trending News 🌥️

The company’s stock dropped nearly 20% in Thursday trading, however, as investors responded to disappointing guidance for the fourth quarter. Peloton ($NASDAQ:PTON) is a leading provider of streaming fitness content and interactive fitness equipment. The company has seen strong growth in recent years, as more and more consumers embrace fitness streaming as a convenient and affordable way to workout. Despite the strong top-line growth, Peloton’s guidance for Q4 disappointed investors.

Peloton’s stock has been on a tear in recent months, but Thursday’s sell-off shows that investors are still somewhat cautious about the company’s prospects. With that said, Peloton remains a strong growth story in the fitness space, and its stock could rebound in the days and weeks ahead.

Earnings

The company sells exercise bicycles and treadmills as well as online streaming classes to its members.

Price History

Peloton Interactive, Inc. stock opened at $7.40 on Thursday and closed at $9.30, up 8.2% from its previous closing price of $8.60. This was in spite of mostly negative media exposure. Peloton has been in the news recently for all the wrong reasons. There have been reports of the company’s treadmills causing injuries, and even one death.

In spite of this, the company’s stock has been on the rise. The company has been growing in popularity, especially during the pandemic as people have been looking for ways to stay fit while staying at home. It will be interesting to see how Peloton fares in the coming months, in light of the recent negative media attention.

VI Analysis

Peloton Interactive, Inc. is a high-risk investment in terms of financial and business aspects, according to VI Risk Rating. The company has 4 risk warnings in balance sheet, cashflow statement, non financial, financial journal. However, the company’s fundamentals reflect its long term potential.

VI Peers

Peloton Interactive Inc is a company that designs, manufactures, and sells fitness products. The company’s products include a line of fitness equipment, such as treadmills, stationary bicycles, and rowing machines, as well as a line of fitness apparel and accessories. Peloton Interactive Inc has a number of competitors, including City Sports and Recreation PCL, Lindblad Expeditions Holdings Inc, and Vista Outdoor Inc.

– City Sports And Recreation PCL ($SET:CSR)

City Sports And Recreation PCL is a publicly traded company with a market capitalization of 1.32 billion as of 2022. The company has a return on equity of 1.21%. City Sports And Recreation PCL is engaged in the business of providing sports and recreation facilities and services. The company operates in Thailand and has a network of sport and recreation facilities that includes swimming pools, fitness centers, and tennis courts.

– Lindblad Expeditions Holdings Inc ($NASDAQ:LIND)

Lindblad Expeditions Holdings Inc is a global provider of expedition cruises and adventure travel experiences. The company operates a fleet of purpose-built expedition ships and offers itineraries to destinations in Antarctica, the Arctic, Galápagos, Alaska, the South Pacific, Europe, and South America.

Lindblad Expeditions Holdings Inc has a market cap of 390.55M as of 2022. The company has a strong ROE of 95.66%, indicating that it is efficient in generating profits for shareholders. Lindblad Expeditions Holdings Inc is a great company for investors looking to profit from the growth of the expedition cruise industry.

– Vista Outdoor Inc ($NYSE:VSTO)

Vista Outdoor Inc is a publicly traded company with a market capitalization of 1.49 billion as of 2022. The company has a return on equity of 35.55%. Vista Outdoor is engaged in the design, manufacture and marketing of consumer products in the outdoor sports and recreation markets. The company’s product portfolio includes firearms, ammunition, archery, fishing, hunting, and camping products.

Summary

The company’s products are popular with at-home exercisers and its Peloton app offers a wide variety of live and on-demand fitness classes. Investors are drawn to Peloton’s strong growth potential. Peloton is also expanding its product offerings beyond exercise bikes to include treadmills, rowing machines, and workout apparel. Peloton’s high valuation means that it is not without risk.

The company faces stiff competition from established players like NordicTrack and Precor, as well as new entrants like Echelon Fitness. Peloton will need to continue to innovate and grow its subscriber base to justify its current valuation.