Peloton falls 15% from IPO price – four experts on what this means for IPO market

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Peloton falls 15% from IPO price – four experts on what this means for IPO market $PTON (via TradingNation)

having more trouble. ... It seems like the market sort of confined Peloton to the misfit toys a little bit yesterday."

Robert Herjavec of Herjavec Group says no matter how great Peloton's business model is, the current IPO environment means it will be treated harshly. "I really thought Peloton was going to do great. I don't have a Peloton. I'm a huge Soul Cycle addict. So I have to say that, but they have a great recurring revenue model. I think the recurring revenue is around $200 [million] to $220 million a year. That's a great business. What it tells me is, if you're losing money, it's probably not a great time to do an IPO. As great a company as Peloton is, they're still going to lose ...

Robert Greifeld, former Nasdaq chairman and CEO, says quality companies will be highly prized in this IPO environment. "We have to recognize the IPO market generated over $50 billion in capital this year. I remember back in 2003, when I started with NASDAQ, we had zero IPOs and zero dollars raised ... I think what you have to look at is the quality of the offerings. Anytime you have difficulty in the IPO market, we see there's a flight to quality. So clearly, if you have a company that is actually generating profit that is growing, I think that window is wide open.

 

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TradingNation Buy a bloody bike FFS. Way cheaper. Won't work financially.

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Peloton prices IPO on high-end of expectations, valuing digital fitness company at $8.2 billionPeloton is the first company to make cycles and treadmills equipped with screens for users to join live and recorded fitness classes remotely. It has earned a loyal and avid following of users, who stream its classes from their homes, hotels or the office. I’m in! onepeloton changed my life! For a clothes hanger? Maybe this time it will be different $uber, $lyft, $we
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