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Peloton delays annual 10-K report, stock down on cost cuts

Yahoo Finance anchors discuss Peloton's 10-K filing delay and the outlook for the company.

Video Transcript



BRIAN CHEUNG: Well, Peloton filed to delay its 10k saying it needs more time to finish its accounting disclosures. As a reminder, a 10k is a financial statement that a public company must provide to the SEC and is generally more detailed than the annual report that it gives to shareholders. For what it's worth, shares of Peloton down around 70% this year, as it carries out an aggressive turnaround plan.

And Akiko, you know, this is already after a number of headlines that we've seen with the company, right? They had three rounds of layoffs. Six days ago, they said they were going to start selling equipment on Amazon, although not the Bike+. You know, this is a company that's really trying to figure its stuff out, and kind of highlighted by the fact that they need a little bit more time on those disclosures.

AKIKO FUJITA: Yeah, I don't think we make too much of this delay, itself. I mean, as you said, this is very much a company that's in transition since Barry McCarthy the CEO took over earlier this year. A lot of cost cuts coming in addition to that Amazon deal. Of course, the company also shutting down some of its showrooms, right?

And so, you know, you know could argue, if you're an investor in Peloton, it's been a rough road getting here. But we are-- or are we starting to see some signs of what that turnaround is going to look like? A smaller footprint, more outsourcing on the manufacturing itself, and then really trying to keep the platform a little stickier so the customers they do currently have will stick around.

BRIAN CHEUNG: Yeah, and look, I mean, a lot of people are probably looking at the highs that we saw in December 2020 when the stock was $163. And now, this is $10, right? And you probably go, well, is this a stock that's going to be $0.00?

But I mean, Peloton still has a-- you know, it's a smaller footprint, but the amount of people that are still using the bikes is still relatively high. I mean, this is a decent company that does have value, even in the postpandemic world. The question is whether or not it's fairly priced now.

And I think that's the big story here. You can look at a statistic, like the year-to-date decline and say, well, this is a garbage company because it's down 70%. But part of the repricing postpandemic, which we're also seeing with Zoom as well, is just what is the proper valuation of this company after a time period in late 2020 and early 2021 where people were saying, these are gonna be the future Teslas of the world. Well, not so the case when people realize most human beings go back to what their regular days were like prepandemic.

AKIKO FUJITA: Well, exactly, when you couldn't escape your house, paying several thousand for a bike didn't seem like a whole lot because you can go to the gym. Now, there's other options that are available. I mean, I keep coming back to whether, in fact, Peloton's gonna be an acquisition target, which has been the constant question, because of how far back-- you know, how much the company has pulled back. But of course, we're gonna continue to follow this story. It feels like there's a headline out of the company every week.