|Day's Range||1.8500 - 2.1000|
Miller Value Partners recently released its 2019 Q3 investor letter – you can download a copy here. We just published another article about Bill Miller's comments earlier today. The investment management firm did not have a good third quarter, experiencing a 1.81% decline, while the S&P 500 rose 1.70%. One of the top contributors for the fund over the […]
(Bloomberg) -- Some of the least-loved stocks to make their debuts this year are rallying on Monday as the S&P 500 Index hovers in record territory.Fitness company Peloton Interactive Inc. gained 11% to a record high, closing above its IPO price of $29 for the first time. At its low last month, the stock was down 27% from its September IPO price, after falling amid concerns over its path to profitability. Lyft Inc. rose 4.2%, to its highest in almost two months, after picking up corporate clients in a deal with rival Juno, which is closing its New York-based operations. While the stock has fallen 38% from its March initial public offering, the share have added 10% since Sept. 30, on track for its first quarterly gain.Slack Technologies Inc., down about 40% from a record set on its first day of trading in June, held onto a gain of 1.1% on Monday. Shares of the workplace-collaboration software company are on a record winning streak after advancing for five consecutive days. Pagerduty Inc., meanwhile, traded above its initial offering price for the first time since October but is still down more than 50% from a June record.To contact the reporter on this story: Jeran Wittenstein in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Courtney DentchFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Staying in shape isn't going out of style anytime soon for the selfie generation, Jim Cramer told viewers of his Mad Money program Wednesday night. Shares of Planet Fitness dropped 31% from their highs earlier this year as it fell out of favor and investors took issue with the company's 8.8% same-store sales growth in August when analyst were expecting 9%. Peloton had a rocky IPO in September, debuting at the wrong time and immediately breaking its IPO price.
Peloton is known for its on-demand workout program on exercise bikes which allow riders to join virtually with other participants. Peloton's shares fell 7.5% earlier this month after it forecast a loss for fiscal 2020 in its first earnings, following a disappointing market debut in September.
(Bloomberg) -- Peloton Interactive Inc., the unprofitable fitness company whose stock has been skidding, plans to introduce two new pieces of workout equipment next year in a further expansion beyond cycling.The company is working on a new treadmill that will cost less than the current $4,000 model, as well as a rowing machine, according to people familiar with their development. Peloton has also explored apps for Amazon.com Inc.’s Fire TV and the Apple Watch to complement its smartphone software, though the status of those projects is unclear, said one of the people, who asked not to be identified because they weren’t authorized to discuss the information publicly.The new pieces of hardware will likely be the first introductions for the company in at least two years, when the original treadmill debuted. But people familiar with the plans said the release timing could change. Peloton’s stock jumped as much as 9% in intraday trading on the news.Jessica Kleiman, a spokeswoman for Peloton, declined to comment on products in development. “Our R&D team is always working on ideas,” she wrote in an email.In the almost two months since Peloton went public, investors have called for the company to reevaluate its expensive growth ambitions and focus on turning a profit, much like with other technology companies that have gone public this year. Peloton’s initial public offering fell flat, and the stock is down 15% since then. John Foley, the chief executive officer, said on a conference call with analysts last week that management is convinced now is the time to spend on expansion. “If we pull back on growth, we could be profitable tomorrow, but that is not what the board and the leadership at Peloton believe we should do,” he said.Foley helped start Peloton with a Kickstarter campaign in 2013, pitching live and on-demand cycling classes streamed to the home. The main hardware product is a $2,245 stationary bike affixed to an iPad-like device. It has recently expanded to Canada and Germany and is also building fitness studios in New York and London.Peloton now offers a variety of classes, including boot camp-style workouts, meditation and yoga, through apps that don’t require pricey equipment. More than 500,000 people take Peloton classes, which require a membership costing at least $19 a month. The company describes itself as the “largest interactive fitness platform” in the world.Foley has fashioned Peloton as a tech company, which has helped boost its market value to $7 billion today. Executives emphasize user engagement as a key business metric. The company said last week the average user was nearly a dozen workouts on Peloton each month, up from nine in the same period last year. Executives see the addition of new kinds of workouts as a way to increase engagement. In 2018, Peloton introduced its first treadmill at the Consumer Electronics Show in Las Vegas. The bulkiness of the equipment and $4,000 price tag have made it a niche product, though Foley has said he’s happy with sales of the treadmill.To increase sales, Peloton has looked for various ways to make its products more affordable. It offers monthly installment plans on equipment purchases through a startup called Affirm and acquired an engineering firm this year that previously designed devices for Google and Facebook Inc. Foley said in an interview last week that the acquisition would give Peloton cost advantages and potentially speed up production.Foley aspires to create the Apple Inc. of fitness and has taken many cues from the world’s most valuable public company. One of those is product secrecy. During the IPO roadshow, Foley would only answer questions about new products by saying Peloton could have a “better, best” strategy, suggesting it may sell multiple models of bikes or treadmills at different prices. In an interview with Bloomberg TV on the day of the IPO, Foley declined to answer questions about new products. When asked specifically about the potential for a rowing machine, Foley responded with a smirk: “I think rowing is a fantastic workout.”(Updates with share move in the third paragraph.)\--With assistance from Jason Kelly.To contact the reporters on this story: Julie Verhage in New York at firstname.lastname@example.org;Mark Gurman in San Francisco at email@example.comTo contact the editors responsible for this story: Mark Milian at firstname.lastname@example.org, Alistair BarrFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Peloton investors are looking for more affordable workout devices to spark the stock since its post-IPO decline.
SmileDirectClub did all it could in the third quarter to get investors excited post IPO. Yahoo Finance speaks with SmileDirectClub CFO Kyle Wailes.
LOS ANGELES, CA / ACCESSWIRE / November 8, 2019 / The Schall Law Firm , a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Peloton Interactive, ...
Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, is investigating potential claims against Peloton Interactive, Inc. on behalf of Peloton stockholders.
Planet Fitness earnings topped views late Thursday days after Peloton disappointed with its first report following its IPO. Planet Fitness stock rose.
LOS ANGELES, CA / ACCESSWIRE / November 7, 2019 / The Schall Law Firm , a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Peloton Interactive, ...
Shareholder rights law firm Robbins LLP is investigating Peloton Interactive, Inc. for potential violations of federal securities laws pursuant to its September 2019 initial public offering .
(Bloomberg Opinion) -- Masayoshi Son, the founder of SoftBank Group Corp., has joined the new religion for technology investing.On Wednesday, Son disclosed SoftBank’s third-quarter investment losses from bets on WeWork, Uber Technologies Inc. and other stakes. He also talked about his fealty to corporate cash flow and putting appropriate guardrails on young companies. Son displayed something that seemed like humility — in actuality his typical bravado with some humble words mixed in. Son also said the strategy for SoftBank’s giant tech investment fund has not changed fundamentally, and he disputed the characterization of its recent financial rescue of WeWork as a bailout. It most definitely was a bailout.This was quite a change, at least in tone, for a man who wanted companies to be more “crazy” and more than anyone else is responsible for the recent hyperinflation of startup valuations and founders’ egos. And it shows the pressure Son is under to deliver financial returns for Vision Fund investors and get cash for another one. But Son’s pivot and the circumstances around it also call into question the very foundation of company-building in the last decade.Uber executives, for example, started their third-quarter earnings call this week by discussing the company’s efforts to balance revenue growth with a move toward profitability. If someone had told me at the beginning of the year that Uber would be talking about temperance, I don’t think I would have believed it. Temperance at Uber is relative, to be sure. This year, Uber has bled 25 cents in cash for each dollar of revenue.Contrast Uber’s tone with that of Peloton Interactive Inc., the maker of an indoor bicycle and virtual fitness classes, which has defiantly stuck with a strategy of pouring money into international expansion, heavy marketing to land new customers and other projects to grow faster. It could work, but it’s an approach that has fallen out of fashion. Investors don’t truly buy either company’s strategy. Peloton’s stock price has fallen 22% from its September initial public offering. Uber shares have declined 40% from their IPO price in May and hit a record low on Wednesday as restrictions lifted on the ability of private investors and employees to sell their shares. Most other highly valued startups haven’t done much better as public companies. I suspect share declines for Uber and rival Lyft Inc. would be worse if they hadn’t responded to stock investors’ sudden zeal for financial prudence from young companies. Still, investors’ and companies’ shift to worshiping at the altar of profits might not last. It was only a few years ago that investors started to become anxious about the vast sums of money flying into unprofitable startups. The bubble didn’t burst, but air deflated a bit from the balloon.Investments in startups pulled back for a while, and some young companies died or still haven’t recovered their valuation from those pre-2016 heady times. But then SoftBank unveiled its nearly $100 billion tech investment fund, and it was off to the races again at a speed that made the earlier mania seem sober.The latest turn against fast-growing but possibly unsustainable young companies isn’t only about the specific struggles of WeWork and Uber or SoftBank’s bazooka of startup cash. Stresses on those companies call into question the entire model of funneling oodles of cash into a company to help it grow very big very fast.Of the more than $23 billion in stock that Uber has sold during its lifetime, more than 90% traded at share prices higher than the current one. And for a good chunk of the rest, investors could have done nearly as well in a plain-vanilla equity index fund. This is the most successful company of the uber-unicorn era, and it’s been a poor investment for nearly everyone.This could all turn around, of course. As every young tech company with a sagging stock price likes to say, Facebook Inc.’s share price stumbled in its first 15 months as a public company before a rebound turned the company into one of the best stock investments of this decade.The problem with Uber and other growth companies is they couldn’t exist without the tidal wave of cash available for ambitious startups in the last decade. And yet it’s still not clear how much is a mirage.It’s possible that the natural state of Uber and other highflying unicorns is a healthy business whose economics don’t look fundamentally different from the incumbent industries they’re trying to bust up. That’s hardly the ambitious vision behind the Vision Fund.A version of this column originally appeared in Bloomberg’s Fully Charged technology newsletter. You can sign up here.To contact the author of this story: Shira Ovide at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Shira Ovide is a Bloomberg Opinion columnist covering technology. She previously was a reporter for the Wall Street Journal.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
As Peloton tries to cycle into a new buy zone, here's another recent IPO that investors should keep an eye on: Arcosa, a leader in construction and energy.
Peloton Interactive Inc (NASDAQ: PTON ) saw stronger results than expected in nearly every metric in the connected fitness bike provider's first quarter as a public company , keeping sell-side analysts ...
The first earnings report as a public company for Peloton, the internet-connected bike and treadmill exercise firm, was a rocky one. Peloton said it more than doubled its “connected fitness” subscribers year-over-year. The designation—which can refer to people, households, or commercial properties that pay for its exercise services —jumped from 277,000 users in the first quarter of its fiscal 2019 to 563,000 users in the first quarter of its fiscal 2020, the company said in its shareholder letter published Nov. 5.
When you first start learning how to read stock charts, it can be a little intimidating. But you can quickly get up to speed with this new series on Chart Reading For Beginners.
Home fitness equipment maker Peloton Interactive on Tuesday beat Wall Street's sales target for its fiscal first quarter, but its loss was larger than expected. Peloton stock fell on the news.
(Bloomberg) -- Peloton Interactive Inc. was on the rise following a beat-and-raise quarter Tuesday morning, but shares pivoted during its first earnings call as a public company, falling as much as 9.6%. Analysts were broadly positive about its fiscal 2020 first quarter beat-and-raise, but questions about where its business was headed continued to be raised as the company provided details, including around its acquisition of a bike manufacturing partner.JPMorgan analyst Douglas Anmuth maintained his overweight rating and price target of $32, saying that while upside was expected, Peloton’s results “exceeded the bar.”Anmuth asked about acquiring its bicycle manufacturing partner Tonic Fitness Technology, to which Chief Executive Officer John Foley replied that while Apple doesn’t own Foxconn, Peloton wanted “a little bit more control” over its supply chain.Raymond James analyst Justin Patterson maintained his outperform rating and price target of $32, attributing Tuesday’s share price action to recent IPO performance around earnings.“That seems like more of a statement on market positioning around recent IPOs than Peloton’s fundamentals,” he said in response to emailed questions.Bloomberg Intelligence analyst Mandeep Singh said that while Peloton results beat, a good quarter was expected, and questions still remain about its path to profitability.“Peloton starting to lower prices on bikes and treadmills speaks to competition. If the subscription business doesn’t offset the hardware gross margin compression, profits will be weighed down. It all goes back to gross margins and [the company] could be making it more challenging by getting into the weeds with manufacturing.”Goldman Sachs analyst Heath Terry also reiterated his buy rating and maintained a price target of $37.Peloton’s outperformance was attributed to better-than-expected product sales with higher connected fitness subscriber net adds.DATAPTON has 19 buys, 1 hold, zero sells; average PT $31: Bloomberg dataShares are down 19% since its Sept. 25 IPO versus the Nasdaq Composite’s +4.6%To contact the reporter on this story: Crystal Kim in New York at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, Jennifer Bissell-LinskFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Peloton stock getting a boost on news that the company will be introducing a new treadmill and rowing machine to its offerings for customers Bloomberg reports.
Nov.05 -- John Foley, Peloton Interactive Inc. chief executive officer, discusses the company's outlook and strategy after posting earnings with Bloomberg's Caroline Hyde and Romaine Bostick on "Bloomberg Markets: The Close."
Shares of Peloton fell after releasing its first quarterly financial results since going public. Despite surpassing analysts’ expectations for its quarterly revenue and fitness subscribers, Peloton is trading lower than its IPO price Tuesday, falling as much as 6%. Yahoo Finance’s Jen Rogers, Myles Udland and Brian Cheung discuss on The Final Round.