Peloton shares plunged to an all-time low as investors gave up hope that the internet-connected fitness equipment maker could do better, offsetting losses and earning profits, even under the company’s new CEO. Read more [Barry McCarthy Becomes CEO of Peloton].
The stock plunged by more than 13% to reach its lowest level ever to $14.70 after a widespread sell-off, which came at prices well below the initial public offering price for the company’s share of $29 per share, and the trading round was closed with a decline in the share by 8%, making up for it. Some of its losses, and the company’s market capitalization has fallen to less than $5 billion from its levels early last year of $50 billion.
According to the Wall Street Journal, Peloton seeks to target the best potential investors such as major industry influencers and private equity firms to acquire a stake between 15% and 20% of its business, where the new capital can help the company in its attempt to change, but there are no guarantees of the success of such Deal. Read more [Peloton Stock Rises After Potential Deal With Amazon & Nike].
Pressure mounted on Peloton to sell itself from activist Blackwells Capital, and Blackwells Capital asserted that the changes made so far under McCarthy were not helpful and sufficient, and declared that the best owner of the company might be Amazon or Netflix.
Peloton is seeking to attract new customers and make more cash from existing customers, it has recently lowered the prices of BAIC, PIKE Plus and TRADE devices, but plans to raise the full monthly subscription fee next month. Read more [Peloton Stops Production Some of Its Main Devices].
It is worth noting that Peloton’s shares have fallen by more than 55% since the beginning of this year so far.