Peloton had been sitting on quite a pedestal of late — with its loyal fan base willing to pay a premium price for its bikes and streaming service. But after the less-than-stellar IPO performance and a recent lawsuit, cracks at the company may be starting to appear.
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Ask any fitness-loving friend about Peloton, and you’ll probably hear rave reviews about the brand. Those who want one of its coveted bikes will swoon over it, and those who already have one will likely tell you all about it … and then some. Peloton’s customer base is growing, and among the fitness community, Peloton remains the It brand.
And yet, the company’s IPO last Thursday was anything but a victory lap. The shares, priced at $29, instead opened at $27 and closed the first day of trading at $25.76. And one point, shares were down as much as 15 percent.
CEO John Foley told Bloomberg he felt “some disappointment” after the lackluster performance. One theory for the slump? Companies like WeWork that focus on growth but burn through cash and post big losses are spooking investors.
Still, Foley said that even with the off day, the company is fully funded and can focu
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