Peloton investors face a new reality as fitness company's costs eat into profits

In fiscal fourth quarter of 2019 — just two years ago — Peloton had 511,000 connected fitness subscribers. Now, the company boasts 2.33 million. These subscribers shell out $39 per month to access Peloton's digital workout content.Nasdaq 100

Anmuth holds a price target of $138 on Peloton shares. He still expects international expansion and future product launches, including a rumored rowing machine, will help to fuel growth. "Over the past year and a half, [Peloton] hasn't really had to pull any levers," Wedbush analyst James Hardiman said in an interview on CNBC's "Tech Check" Friday. "And now, for them to continue to fuel this growth story ... they are going to have to play their cards exactly right for the current valuation to stick."Not only is Peloton slashing the price of its Bike, but it will hike marketing spending significantly in the coming months.

Peloton has stated previously that it sees an opportunity to reach roughly 15 million households globally, and sell 20 million units of equipment, compared with the 2.33 million it has sold to-date. "Lowering the cost of the Bike may grab new customers, but it shouldn't extend their lifetimes," Siegel said. "And if anything, one can make hypothesis that the lower the initial cost, the lower the barrier to churn [or drop the service]."

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Peloton screwed the pooch. Their reaction to the treadmill issue turned it in to a complete disaster. Bad PR can cripple a company and Peloton is living proof.

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Taxing companies' overseas profits could be the next rift among DemocratsA significant number of Democratic lawmakers are concerned that proposals by the White House and others to beef up a minimum tax on big companies go too far and will put American firms at a competitive disadvantage. Totally thought this was Liam Neeson at first glance. Bet the side that doesnt want to tax corporations overseas wins! We’ll just keep upping taxes for low-income/middle class individuals/families, ya know, give these massive, million/billion dollar companies a break, they work so hard to provide livable wages, healthcare, and environmentally sound products 🙄
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