The sudden requirement to be cooped up at home for millions of fitness enthusiasts during the pandemic created a problem, and with it came a huge opportunity on which Peloton capitalised in style, reaching a staggering market cap of over $50bn by the end of 2020. Then the gyms reopened, cyclists got back on their road bikes, demand waned and Peloton's share price went into freefall. So what next?
Optimism from Barry McCarthy surrounding a restructuring of Peloton's business leading to improved fiscal performance and sustainable long term growth has been prevalent in recent weeks and will be encouraging for shareholders, however I feel there is another consideration that could play to Peloton's advantage.
Is the return to traditional gyms and outdoor exercise an over inflated trend of similar nature to what enabled Peloton to flourish so famously during lockdown?nice to have economy', but I do believe that a correction is in order, and that a more balanced state can be found between traditional exercise and the home connected fitness ecosystem. Time will tell...
Perhaps after a period of going back to the old way of doing things, some people are missing the immense convenience and wider geographical connectivity with others that Peloton (and their rivals) are able to offer. I would be surprised to see demand hit the levels of mid-2020 in the near future given the wider impact of a major retraction in the '
Peloton believes it has turned a corner in its path to sustainability after encouraging quarterly financial results sparked a record increase in the connected fitness pioneer’s share price. The company has failed to generate a profit for eight successive quarters and despite Q2 revenues falling by 30 per cent year-over-year (YoY) to US$792.7 million, this was better than expected.