Amazon, Nike reportedly interested in acquiring Peloton ahead of its earnings call
Yahoo Finance Live anchors discuss Amazon and Nike's rumored interest in buying out Peloton.
DAVE BRIGGS: My play, pandemic darling Peloton. The company pedaled so hard, it sweated off more than half their market cap last year. But they've attacked the climb this year. I got Seana with that one. Shares up nearly 60% this year.
Multiple companies meanwhile reportedly eyeing an acquisition of Peloton which would have cost $50 billion at their peak but now riding through a bit of a valley below $5 billion in terms of market cap. Blackwell Capital, one of the company's largest investors, suggested a few names in a recent letter to the company, writing Apple, Disney, Sony, Nike, plus any number of tech, streaming, metaverse, and sportswear companies might get Peloton back towards the front of the pack.
While neither has commented publicly, Amazon and Nike are both reportedly interested here. Peloton will report results tomorrow. And ahead of that release, revenue estimates have been down-- downward revised 22 times, just once upward. And look at the stock, a huge jump up today, not necessarily on this report, just ahead of earnings tomorrow.
I want to throw in a name. I'm not a large investor or an investor at all. I think Netflix ought to be considered here because they internally talk a lot about wanting people on the platform more regularly.
This is not about streaming a series but they want people on it each day. And there aren't many things to do that. That's why I think this makes sense for Netflix.
SEANA SMITH: That is a compelling story there. And I'm not sold, but I think it's interesting. And I wouldn't count it out when you talk about the content--
DAVE BRIGGS: You can say that's a heck no.
SEANA SMITH: I think it's far fetched. But I do think maybe there is some sort of possibility there. In terms of the most likely, I think, if Peloton were to get bought, I would have to go with Amazon, given that partnership that we've already seen from Peloton. It does certainly seem to be paying off a bit when you take a look at their subscriber numbers, what is expected to see-- what we're expected to see tomorrow morning when they do report.
Subs are expected to be added there, although it might be slightly below the Street's expectations. But Peloton needs to do something to diversify their business, to get some of that momentum back that they have lost pretty significantly since peak pandemic times.
INES FERRE: My bet is on Apple, hardware.
DAVE BRIGGS: Yeah.
SEANA SMITH: And they certainly have the money for it.
DAVE BRIGGS: Apple and Amazon have the most cash and a ton of content needs as well, certainly. Ines, thank you.