Notifications Bell

Will Peloton be sold?

Will Peloton be sold?

Peloton is attracting interest from potential buyers

According to sources familiar with the matter, the retail behemoth Amazon is considering buying Peloton and is in talks with advisers regarding whether and how to proceed. Also, the Financial Times reported at the end of last week that Nike is evaluating a bid for Peloton.

All parties have declined to comment on the matter.

The news came just days after activist investor Blackwells Capital urged the company's board to put it up for sale and remove CEO John Foley, accusing him of deals that set high fixed costs and holding on to increased inventory while misleading investors about the need for capital. During the COVID-19 lockdowns, Peloton's sales surged as people bought equipment to workout at home. But as the restrictions started to be lifted, the company's fortune began to fade.

Peloton is going through a rough time trying to soften the blow to its growth by cutting the price of its famous bike and putting more money into ads. In January, Peloton revealed that it was reviewing the size of its workforce and working on the production levels. These measures followed a report which stated that the company was temporarily halting production of its popular fitness bikes and treadmills after a significant drop in demand.

Now all eyes are on Peloton Q2 2022 earnings, due February 8th.

At the moment of writing, Peloton's stock price was trading 23.25% higher.

Sources: cnn.com, ft.com, wsj.com

This information prepared by za.capex.com is not an offer or a solicitation for the purpose of purchase or sale of any financial products referred to herein or to enter into any legal relations, nor an advice or a recommendation with respect to such financial products.

This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation or the particular needs of any recipient.

You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.

This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent. Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of za.capex.com

JME Financial Services (Pty) Ltd trading as ZA.CAPEX.COM acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via ZA.CAPEX.COM, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15. Magnasale Trading Ltd is the principal to the CFD purchased by investors.