Will Peloton Go Out of Business or Be Acquired? 🚲 [$PTON Outlook]

I look at the downtrodden exercise equipment and “media” company Peloton. I detail calls from activist investor Blackwells Capital LLC for Peloton to fire CEO John Foley and shop the popular exercise bike company around to any (and I really mean anyone, look at the documents from Blackwells) who will listen and can write a $10 billion plus check.

I look at how much Peloton is currently worth and give thoughts on whether or not Peloton’s business should justify current valuations. Peloton really benefited from the Covid economy but I think it’s questionable if they can really expect the market for at home equipment to continue to see such red hot growth levels. Also, as stated in previous WTA videos, I think Peloton has boasted about being a platform company with network effects to a degree that may cross the line the territory of deception. I think this could possibly bite them.

As for who should buy Peloton, I don’t think it makes much sense for media companies like Disney or Netflix to make an acquisition here. If a company were to acquire Peloton, I think it would be an apparel company such as Adidas or Nike. We saw a similar move from Lulu Lemon when they purchased fitness startup Mirror for $500 million in 2020.

Originally Aired: 02/11/22
#Peloton #Investing #PTON

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