Peloton IPO Peloton's IPO, one of the season's most keenly watched, didn't go so great. With an IPO price of $29, the fitness firm's stock ended yesterday 11.2% lower at $25.76. That's the second-biggest IPO flop of the year, after SmileDirectClub. No matter, said CEO John Foley. "I will say a lot of these young tech companies get criticized for staying in the private markets too long, and I feel like if we would have waited any longer we might have been painted with the same brush, so it felt like this was the right time." Fortune
Citron Research Presents Peloton – Investors Peddling Themselves into Frenzy 2020 Price Target $5 Before we even start with the narrative, we are obligated to show the only chart that matters. Unless Peloton invents a piece of equipment that works out for you – this is going to $5 (which is still a $1BN-$2BN market cap). Looking back over the past 5 years, one of biggest trading regrets held by Citron was not being more aggressive and staying short GoPro from the article we published in late 2014. https://citronresearch.com/wp-content/uploads/2014/11/gpro-final.pdf While Wall St was giddy over the new “must have product”, Citron maintained that GoPro sold a consumer electronics device that would eventually show decelerating growth as competition came into the marketplace. At the end of the day no matter how much lipstick Wall St put on this company, it was just a camera – the rest is history. Disclosure: Yes, we own a Peloton bike just like we owned a GoPro, Fitbit, Blackberry, and even an ab roller… but who cares. Read the Full Report Here Disclaimer: These reports have been prepared by either Citron Research (“Citron Research”) or Citron Capital, LLC (“Citron Capital”). Citron Research and Citron Capital are referred to collectively as “Citron” and each individually as a “Citron Entity.” Each report specifies the publisher and owner of that report. All reports are for informational purposes only. Under no circumstances should any of these reports or any information herein be construed as investment advice, or as an offer to sell or the solicitation of an offer to buy any securities or other financial instruments. Citron Research produces research reports on publicly traded securities. The reports are the property of the applicable Citron Entity that published that report. 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Peloton’s Q4 earnings showed a 172% YoY jump in revenue, and its connected subscribers were up 113% YoY. The pandemic has exploded the market for digital fitness There are 62m gym memberships in the US and 183m globally, according to a 2019 report. But many people shifted to online workouts during the pandemic, and gyms have been slow to reopen. Many notable gym brands have filed for bankruptcy in recent months, according to PETITION: Gold’s Gym, 24-Hour Fitness, SNFW Fitness (Steve Nash’s), Town Sports International (New York Sports Club). They posit that high-end Equinox could be next.
Hilarious... Let them buy our bikes / fitness memberships and let them use their hashtags on our platform. Now that we have their money...lets now remove their hashtags wrbtrader