Peloton narrows losses, stock jumps: What the company needs

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Peloton Nouvelles

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Peloton (PTON) shares are surging in pre-market trading — and rising by over 10% after Thursday's market open — after posting narrower-than-expected losses...

) shares are surging in pre-market trading — and rising by over 10% after Thursday's market open — after posting narrower-than-expected losses of $0.08 per share and revenue of $643.6 million for its fiscal fourth quarter. Once considered a"pandemic darling," the home exercise equipment manufacturer's stock has dramatically fallen off of its 2021 highs and is still down by over 30% in 2024 year-to-date.

McTernan comments on what Peloton investors may be looking for in a new chief executive and content from new fitness programs and social exercise groups may challenge Peloton's growth.Shares of Pton they are in rally mode.It's been a rough go of it, rough ride if you will for Peloton to say the least shares have fallen over 40 percent this year and demand for the company's products have taken a massive hit since the end of the pandemic.

And so, I mean, the key is getting revenue back to where um the trajectory of where, you know, Barry mccarthy prior CEO was, was looking for where he was willing to take the margin hit near term to, to really grow that subscriber base and, and gain enthusiasm Um And so that's what the company is working on right now is, is basically the opposite.

Um I mean, it's tough to say we'll have to see the, the commentary we did get from the company is that they are making progression.I'm, I'm assuming it's an outside candidate, but to be honest, um they, they haven't discussed much, much of it.Um You know, look, this company has to show free cash flow growth, has to show continued margin expansion and then you need a growth strategy as well too.

I mean, if you think about, you know, $45 subscription versus $45 you know, Barry's bootcamp class getting that subscription for the month is pretty powerful and also the amount of time that you save too.

 

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