Is Peloton the future of workout? Its share price says yes.Published by Terence Mahier | Source
We introduced you to Peloton a month ago, the startup that sells connected cycles for home use, as well as subscriptions to stream workout classes 🚴♀️
Well, it appears it was a good bet. Peloton’s revenue surged 66% during Q1 to $524.6M, as more people purchased its fitness equipment and tuned into its live classes, to try to workout from home during the lockdowns 🏠
The question is: will people go back to the Gym after the pandemic or will they stick to their new home workout habits? Investors seem to bet on the latter as the stock is up almost +20% overnight 💥
Shares are at an all-time high, but is the ride over?
Peloton last month said it held its largest class ever, with more than 23,000 people streaming it from home 🔥
The company, which sells a spinning bike for $2,245 and a treadmill for $4,295, was predicted to be one beneficiary during the Covid-19 pandemic, as gyms remain shut to the public and people are looking to burn calories elsewhere 😷
The CEO is optimistic that once people tasted the home workout, they will never go back to the Gym. Peloton is one of the very few companies that raised its guidance for the rest of the year, looking at an 89% rise in its year-to-year total revenue. 📈
Peloton IPO'd in September 2019
No Feedback on this trade.
- Newspill Team 💊
07-May 09:14 (Eastern Time)
Every weekday, we send to our community a summary of the most impactful Business/Financial news of the day - the "Daily Dose".