On February 04, reports about interests from potential suitors like Amazon.com Inc. and Nike Inc. emerged for Peloton Interactive Inc. (PTON). Following the chatter in the market, PTON stock surged in the after-hours on Friday to add 26.42%. Hence, the stock was trading at $31.10 at an after-hours volume of 9.75 million.
The stock had added 1.44% during the regular session, at its closing price of $24.60 per share.
The at-home fitness platform operator for live and on-demand indoor cycling classes, Peloton Interactive Inc. was founded in 2012. Currently, its 301.35 million outstanding shares trade at a market capitalization of $8.12 billion. PTON stock has lost 31.21% year to date while losing a huge 83.41% last year.
What is happening with PTON?
The company has been facing some serious headwinds and hence, has been reported to receive interest from outsiders. On Friday, The Wall Street Journal reported about the interest of the e-commerce giant Amazon, in the company. According to the report, Amazon is exploring an offer and discussing it with advisors. While PTON has not yet decided upon the possibility of a sale, activist investor Blackwells Capital has urged the board for selling the company.
In addition, another report in the Financial Times claimed a potential bid interest from Nike in the company as well. According to the report, the sportswear company Nike is also assessing a possible bid but has not yet talked with the company.
What happened before?
During the peak Covid-19 pandemic days, the company’s sales saw a huge upsurge as everything went online and home-based. But with the increase of vaccination and opening of many businesses including gyms, PTON suffered a downfall. Following the decline in demand, PTON reported halting its connected fitness bike production. The company was recently reported to be reviewing the size of its workforce for resetting productions levels.
Last week, Blackwells Capital accused the company’s CEO John Foley of many things including hiring his wife as a key executive. Moreover, Blackwells also urged the company board to put it up for sale to buyers like Walt Disney Co., Apple Inc., Nike Inc., etc.
PTON’s Preliminary Q2 Fiscal 2022 Results
On January 20, the company provided its preliminary Q2 fiscal 2022 results. As per the report, PTON has revenue of $1.14 billion approx., with adjusted EBITDA between $(270) million and $(260) million. Additionally, the average net monthly connected fitness churn is 0.79% and ending connected fitness subscriptions 2.77 million approx.
The company will declare the complete Q2 fiscal 2022 financials on Tuesday, February 08, 2022.
