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Peloton sales are booming amid coronavirus lockdown

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Yahoo Finance’s Emily McCormick joins Seana Smith to discuss how Americans staying at home during the coronavirus pandemic is powering Peloton's bike sales.

Video Transcript

SEANA SMITH: Welcome back to Yahoo Finance's live market coverage. We're taking a look at Peloton today. It's one of the stay at home stock picks. The shares are soaring-- up just around 14% so far this afternoon. This comes after the company reported a 66% jump in people buying bikes during its latest quarter. We have Emily McCormick looking into this for us. And, Emily, we know we saw the massive jump in bike sales, but the company also lifted their full-year guidance.

EMILY MCCORMICK: They did, Seana. And this is a really rare move that we've been seeing among companies-- most of them have been pulling their guidance, saying that the coronavirus pandemic has reduced visibility to the point where they can't provide an outlook. But Peloton is quite the opposite. They say that they now see full year revenue of as much as $1.74 billion. They previously saw as much as $1.57 billion. And now with this revised guidance, that would represent a jump of more than 80% over last year-- so definitely still expecting to see the boost that they had in their latest reported quarter extend through the rest of the year.

And just taking a look at those results again, because they are worth reiterating-- we had quarterly revenue jumping 66% to $525 million and paid digital subscribers were up 64% to 176,000. We did see that loss per share narrow to $0.20. That was versus $1.76 per share in the same quarter last year. And again, Peloton is just one of these companies that has not been seeing demand destruction, but has actually been struggling to keep up with demand. We know anecdotally there have just been weeks worths of waits for people trying to get a hand of these bikes just with the stay at home orders still in place.

SEANA SMITH: Yeah, Emily, was there any comments on that on the earnings call or anything? Because we've been talking about the fact that so many people are lining up to order their bikes. There obviously is a huge challenge here for the company to try and to fill these orders in a timely manner.

EMILY MCCORMICK: Absolutely. And they did mention that on the call, Seana. They said just because of some of the supply chain disruptions that they've seen, they aren't able to really project any improvements on the wait time for now, even though they are trying to expedite shipping as much as possible. They also noted that they have new products in the pipeline, but they've had to rethink the timing of these launches-- again due to the coronavirus pandemic and these supply chain disruptions again.

So it hasn't all been positive for Peloton overall. But seeing just this huge uptick in demand really has been a net gain for the company, and that is being reflected in these shares. Those shares are up 55% for the year to date.

SEANA SMITH: All right. Thanks so much, Emily.