Thread: Peloton recalling all treadmills

H&S breakdown on the weekly chart looking very bearish here.

The chart always knows first. Most of the time.

Big miss in earnings today and getting smashed as a result (-13%). If it holds, it will be down 40% from December highs.

Consumers may be delighted by the $400 price cut of their overpriced bike though.

I own some Peloton stock, but purchased May lows so today's downturn didn't hurt me too badly.

I listened in on the earnings call yesterday, and still believe in the company and its future prospects. The recall certainly hurt its bottom line but it will re-release treadmills along with new equipment soon, expand its customer base to more corporations, hotels, other countries, possibly a clothing line... not to mention the lower price will make sense to a lot of potential customers. They mentioned a current deal with the military as well which was a plus. The possibilities are there. Short term, I do not expect the stock to fare particularly well especially considering the hit to profit margin with the slash in price, increase in semiconductor prices, etc. But longer term, with subscription churn rates below 1%, this is definitely one of my favorites to hold.

Originally Posted by Bullitt

Big miss in earnings today and getting smashed as a result (-13%). If it holds, it will be down 40% from December highs.

Consumers may be delighted by the $400 price cut of their overpriced bike though.

Profits still seem a ways away and this is more a subscription story like Disney or HBO than a broken treadmill story. (Disney and HBO don't have to worry about equipment issues though.) Subscriber numbers are all that shareholders care about, and the rapid pace of adding them fell off a cliff this quarter. Is it due to market saturation or gyms opening up again? The connected fitness space is getting crowded, but Peloton is probably the most recognized brand. Either way it was a huge miss despite the treadmill problems already public knowledge.

I read somewhere today that rides are down from a monthly average of 25 to 20, but 20 is still very high in my opinion. Reopening in general and warm weather are also risks because both give people more options than being indoors alone.

PE of 125 or so, the stock is very vulnerable to any overall market downdraft.

Peloton now bringing in consultants with cuts looming. If they couldn't spin a profit in 2020, how will they do it now short of massive downsizing?

“Morale is at an all-time low,” said one employee, who requested anonymity to be able to speak freely to CNBC. “The company is spinning out so fast.”

https://www.cnbc.com/2022/01/18/pelo...les-slow-.html