Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
5 Ways to Beat the Fed (and Crush Inflation)

Email this Article

Send with mail | ahoo instead.
Required Needs to be a valid email
Required Needs to be a valid email
Peloton Stock - Everything You Need to Know
https://mney.co/2H8zh1D
Required Please enter the correct value.
Twitter
Stocks: FPX, NFLX, PYPL, SNAP, VZ

Peloton Stock - Everything You Need to Know

By Money Morning Staff Reports, Money Morning • February 26, 2019

Start the conversation

Comment on This Story Click here to cancel reply.

Or to contact Money Morning Customer Service, click here.

Your email address will not be published. Required fields are marked *

Some HTML is OK

Peloton’s stock (NASDAQ: PTON) was one of the most-anticipated IPOs of 2019. How did the public offering go? And should you buy Peloton stock?

We're going to answer your questions today. This piece breaks down everything you need to know about Peloton’s IPO, including whether buying shares of Peloton stock makes sense for you.

First, let’s recap Peloton’s IPO…

BONUS: Spot the IPOs that can actually make you money – and leave the flops to the masses – by asking these 5 simple questions. Click here.

Why the Peloton IPO Got So Much Hype

You've probably seen commercials and advertisements for Peloton's stationary bicycles. And you may have also seen their price tags. A basic bike package starts at $2,245, with Peleton treadmills starting at $4,295.Ā  Compare that to the under $200 offerings on Amazon, and you might wonder how this company is raking in money.

But Peloton is much more than a stationary bike maker. It's also a streaming and digital content company.

Peloton subscribers are customers who pay $39 a month to access the company’s classes. Some people spend an additional $12.99 for the Peloton mobile app.

"We stream 24 hours of live television content around the world every day. We have 10,000 classes on demand. It's a media company akin to a Netflix," according to Peloton co-founder and chief executive John Foley.

While comparing his company to Netflix Inc. (NASDAQ: NFLX) may seem bold, the numbers speak for themselves. Peloton announced in February 2020 that they had 712,000 subscribers.

That’s up 96%, or about 362,000 more subscribers than the year before.

Peloton won't release specific figures for its user base, but an analysis of credit card activity in Peloton's online store shows the company has doubled its subscriber base in just the last year.

The data suggests Peloton has overtaken Soulcycle, its main stationary bike competitor, as the nation's fastest-growing fitness company.

Peloton logo on bicycle

And that's translated into revenue growth for the five-year-old startup.

In 2020, the company is expected to have more than $1.5 billion in revenue. By 2021, that's expected to jump 47% to $2.3 billion.

It's also earning the company an eye-popping valuation...

Is Peleton Profitable?

As of its last annual report in 2019, Peleton was not profitable. At the time, the company reported a net income loss of $195 million.

This is not uncommon for newly public companies, but it is also not something to ignore.

Revenue is growing at an impressive clip (110% from 2018 to 2019). But so too are losses. The net income loss in 2018 was just under $48 million in 2018. That means losses grew 306% in that time period.

Profitability will remain one of the most important metrics to watch going forward.

How Much Is Peloton Worth?

Venture capitalists have piled more than $550 million into Peloton already, but the actual valuation of the company will be determined by the market.

Those financiers valued Peloton at $1.4 billion.

But last year's funding round left Peloton with a valuation of $4.15 billion.

Just Revealed: The Secret to Potentially Growing Incredibly Wealthy Buying Straight-Up Stocks

Now that the IPO is gaining steam, the latest valuation projections are for more than $8 billion.

Again, we simply won't know what the company is truly worth until the market decides. But these valuation numbers are coming from some of the world's largest banks with skin in the game.

In fact, the involvement of Goldman Sachs Group Inc. (NYSE: GS) and JPMorgan Chase & Co. (NYSE: JPM) is a major sign the IPO could be coming this year...

When Was the Peloton IPO?

Peloton started trading on the Nasdaq stock exchange on September 26, 2019.

Peloton hired Goldman Sachs and JPMorgan to lead the IPO. These banks valued the company at $8.1 billion and priced its stock offering at $29.

Many investors didn’t agree with that valuation on opening day, though. Peloton’s stock ended its first day on the Nasdaq 11.2% lower than its IPO list price.

Should I Buy the Peloton Stock?

Join the conversation. Click here to jump to comments…

Login
guest
guest
0 Comments
Inline Feedbacks
View all comments
LIVE
Visit Money Morning Live


Latest News

March 30, 2023 • By Garrett Baldwin

A Swing Positive on S&P 500 Presents Us with a Trade

March 29, 2023 • By Chris Johnson

Commercial Real Estate is Feeling the Aftershocks of the Financial Crisis

March 29, 2023 • By Kenny Glick

Here's How You Can Find a New Trade If You Just Missed Your Entry
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover This Is VWAP Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Warlock's World Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Flashpoint Trader Darknet Hyper Momentum Trader Alpha Accelerators Weekly Profit Cycles Brutus Alerts

Ā© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell or Share My Personal Information

wpDiscuz