Peloton Interactive Shares Plumb New Depths After 3Q Report >PTON

By Colin Kellaher

Shares of Peloton Interactive Inc. tumbled to an all-time low in early trading Tuesday after the maker of connected fitness equipment reported mounting losses and its first year-over-year quarterly revenue decline since becoming a publicly traded company.

The New York company also said it was grappling with an oversupply of inventory that has consumed an enormous amount of cash, and that it recently lined up $750 million in financing to shore up its balance sheet, as its quarter-end cash position of $879 million left it “thinly capitalized for a business of our scale.”

Peloton posted revenue of $964.3 million for its fiscal third quarter ended March 31, down 24%, amid a 42% drop in product revenue. The company also forecast fourth-quarter revenue of $675 million to $700 million, well below the roughly $820 million Wall Street was expecting.

Peloton shares were changing hands at $11.83, down about 16%, after falling to $11.53–their lowest level since the company went public in September 2019–early in the session. The stock is now roughly 93% below its all-time high of $171.09 reached last January.

The company, once worth around $50 billion, now sports a market capitalization of less than $4 billion.

Write to Colin Kellaher at [email protected]

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