Peloton's future depends on whether investors think it's a hardware company or a fitness platform

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Even after falling in its stock market debut on Thursday, Peloton still trades at a steep premium to Fitbit, GoPro and Sonos.

Just don't say 'WeWork'

Based on the fundamentals, Peloton looks a lot like other venture-backed growth companies in recent years, with fast revenue growth and even faster-growing losses. Peloton recorded revenue of $223 million in the quarter that ended in June, up more than 100% from a year earlier. Just over 70% of sales came from "connected fitness products," while most of the balance was from subscriptions, which run $39 a month.

Over that same stretch, Peloton's quarterly net loss more than quadrupled to $47 million, largely because of rising research and development costs for new products and expanding facilities. Peloton does not want to be lumped in with WeWork, which has been unable to sell its story to the public market and is now in crisis mode following the. Investors have determined that WeWork is more of an overly-ambitious real estate firm than a tech company, and Foley may not have done himself any favors when he said on Thursday that he refers to losses as investments, describing the company's endeavors as "disciplined investing.

 

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Uh-oh ClueHeywood - the gravy train may be pulling into the station! 😜😂

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