The Big Peloton Stock Crash (Everything You Need To Know)

  • They’ve got a great subscription-based model with a ton of potential!
  • They’ve got really a strong brand.
  • They’ve got a great CEO (very ambitious & motivated).
  • They’ve got decent numbers.

Here’s what you need to know about Peloton

The business model

We’re going to start off with what is, in my opinion, the strongest point of Peloton — their business model. That’s something that a lot of people seem to misunderstand.

The Recent Events

Feb 04 — Peloton’s Second Quarter FY 2021 Report came out.

  • Q2 Net Income: $63.6 million, $0.18 per diluted share;
  • Total Members grew to over 4.4 million.
  • Fitness Subscriptions went up by 134% (to about 1.7 mils)
  • Digital Subscriptions went up by 472% (to about 625 000 vs 561 000 expectations)
  • Q2 12-month retention rate: 92%

The demand issue

One of Peloton’s major issues right now is its inability to meet the demand. People just can’t get enough of them. So, to fix that, management came out and stated that they’ll be investing $100 million into delivery logistics.

But is this the end of Peloton?

I don’t think so. Like I’ve been telling the guys over in our private investing group, people are sleeping on this stock big time. There is massive potential down the line, and all of the bearish naysayers managed to steer a ton of investors away from the company. But hey, that’s just how things work in the Stock Market. With time, you learn to pick up on the real intentions behind what people say and do. And no, I’m not really a fan of this either, but I can’t do much to change it except sharing my thoughts with my audience.

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