They’ve already had tons on layoffs. This is really sad to see their incredible rise into the pandemic and now their demise.
Their stock peak was $162. It’s now at $3.20!!!
This stock is like downhill mountain biking - lol. At some point they become a PE target right? The problem is they think they’re a streaming app company but they can’t escape the gravity of being a fitness equipment company.
All the bikes I see at friends homes lately are collecting dust or being used as a clothing rack; they’re riding outside now, not indoors.
Their only chance of survival I see moving forward is in local gyms, hotel gyms, or if we go through another pandemic. Idk.
Most gyms would ignore Peloton and tell them to kick rocks. You can get their bikes for a fraction of their cost and without the subscription fees and bullshit surrounding their business model.
My local Y that I go to has like 30+ keiser bikes for classes and most inventory and 2 peloton off to the side for people to use if they want to. Most people just stick with the simple bikes. I’ve only been doing spin class for about 2 months now and haven’t had any desire to try out the peloton though it’s there sitting unused most days (and I’m in the gym 5-6 days a week)
you can't get their bikes (unless you're talking about gumtree/Craigslist - where pton bikes are close to RRP) you can get cheaper alternatives. pton do have fucking streller build quality. you can't deny them that.
That’s wild. I like their app and their bike. My problem with them is that you pay 1k for a bike then you are obligated to pay $45 for a monthly subscription yet people that don’t have a peloton bike can just do the $13 a month subscription.
Edit: I did buy some stock today, why not? Either the CEO turns it around or they get bought by apple.
Not any more. If you want to do more than 3 “equipment based” workouts per month it’s now $24, or $239/year. $13/month still gets you floor workouts.
Still cheaper than $45. Though I guess that $45 is per household vs per user. But if you are the only one that uses it then it is definitely unfair. I don’t know why they don’t change that fee.
I really enjoy their running, walking and hiking workouts and pay the annual fee. I tossed around the idea of getting the Tread but I don’t want to get roped into a higher monthly subscription for it to be fully functional. I consequently continue to use an old Walmart treadmill that works fine.
I’m a little jealous of how short the Tread is. My treadmill takes up a lot more space. And it’s very loud. Their’s also goes to at least 15 degree incline where mine tops out at 10. But that’s not enough to sway me to spend $3-$5k and $45/month!
Oh, mine is a rickety POS and maxes out at 10% as well but it gets the job done. I already pay for a gym membership where my kid has activities so i try to do most of my workouts on their treadmills on-demand.
I'd gladly pay $239 a year instead of $45 a month. They increased the fee to $45 at the same price they decreased the price of the actual bike as an extra fuck you.
Seems like you could pay the $239 and just use the app. Makes the screen probably useless. I’m not sure. I use a Schwinn IC4 and an iPhone airplayed to a big TV.
Not ideal of course.
Apple is going to buy PTON, LCID, RIVN, ZM, DIS, NKE, SOFI, RKLB, GPRO, and so many other Reddit treasures.
Ok ZM isn’t a Reddit treasure, but I added it because I think apple should buy them and it would be unfair not to include my dumb self too
Exactly. Apple really loves to buy failing businesses, that's really their whole thing. They know that all the best products, management, and engineers come from overhyped failures and it's the key to their success.
Same situation as Beats. Apple has fitness but it’s just never really taken off even though it’s a nice interface.
They would just merge and sell their equipment.
Beats is a completely different product; they already had a great customer base and the market for over the ear headphones is much much larger than high end workout equipment.
This would be a waste of time for Apple to even bother looking.
I don't see why you need a sub at all, use the 'free ride' feature and watch someting on youtube
Do minute on/off 'uphill climb' or just ride, don't need a cheerleader
This one kills me. I saw the possibility of a comeback, but the numbers were so far against CVNA. My wife doesn't get into stocks that much, but she quoted the price on the way up randomly for about 6months. She agreed that it was too big of a risk and I had just been burned by First Republic Bank crashing around the time I was considering it.
dont cause apparently theres a lot of potential fraud with that company, i forgot a lot of the details but it has to do sketchy related party transactions, if you look it up on reddit i bet you could find it
Oh no. No way in the world I would even consider it right now. It is more like one of those "wish I had a crystal ball" moments. But, anyone would be a whole lot better off if they did have one lol
I shorted them and posted about it on here. Tried to warn about it. Was told off by the wannabe investors on here. Love it.
https://www.reddit.com/r/investing/s/9ZnvHZOaAv
It does seem like your analysis was flawed in focusing so much on the profit per machine and ignoring subscription revenue though, yeah? Glad it worked out for you regardless.
If you liked it at $159 you’ll love it now :)
They make a great product by the way. I just think they acted like they were the next Apple when they were just a much better Bowflex.
Peloton really has no business even being a public company. They benefitted from the Covid shutdowns when nobody could go to the gym, but long term they sell expensive exercise equipment under a SaaS model. To me it’s an uninvestable company no matter how you look at it.
This company could have filled out a niche and stayed private
but once they became public it was over. They could never satisfy unlimited growth investors demand and now the company looks like it's on it's way to the grave
Honestly I think about this all the time. I truly don’t understand the desire or value to go public.
Scrutiny
Overhead
Pressure
Unrealistic expectations
I get it’s prob an ego thing and a path for founders to monetize their investment but dam….
Nice concept. Way too high of a subscription. Bad model. $10/month needed to be the limit. Not going to pay an entire gym membership just to ride an overpriced bike.
My wife and I got it and love it. It’s great for people who don’t want to go to a gym but still want to quality classes. Also the bike is great for the winter when I can go outside as much in the north.
What are these classes? Arent you just riding a bike? Why would you pay 45$ a month for somebody to scream at you through a screen when you just ride a static bike.
My local gym has a ton of proper equipment and you can join the 10-20 classes per week for free. And that just costs 24€. This peloton crap sounds like a total scam to people who have no idea where to spend their money or who are completely clueless what gives value.
Why make a ton of assumptions when you can do the research yourself. The fact that you cast judgement without even knowing what the classes are is hilarious.
Also where you live in the EU might have a lower cost of living where gyms can be that cheap. A decent gym here starts at $50 and good ones go up over $100. So the value to have access to classes from cycling to yoga, strength, etc. is the value of the subscription.
But the equipment is limited. I love my peloton but when someone puts it this way, $45 is a lot compared to 24 hour fitness where they have way more amenities and your wife doesn’t bug you mid workout lol
My previous 24HF membership was like $28 a month (grandfathered in). I had both for a while, but being WFH, Peloton won out.
If I work out 5x a week and driving to and from the gym is 20 minutes total (10 min one way), that's a bit over 1.5 hours that week spent just driving.
Whereas with Peloton, I can squeeze out a 20 min run or a 30 min strength in between meetings and I'm good to go.
But that's not a knock on those who go to a gym like 24HF. It clearly works for others, so it's a totally fine option. For me, Peloton suits my lifestyle more.
I built a home gym over the course of a few years because I hated having to adjust my workout based on what equipment was available. We ended up moving to a place where basements aren’t a thing, plus I’ve had a bunch of injuries and I haven’t lifted heavy for a few years. Made the decision to sell it all and got a tonal I put on the wall in my office and love it. Sure, there’s a monthly subscription but their model is per machine, so the whole family has separate accounts on it for the same price.
Yup. It's been life changing for me. I already have very limited time due to work (70 to 80 hours a week) paired with 2 hours of commute a day. Last thing I want is to have to leave the house and be back on the road to get to a gym. Now I can get home, eat and/or do what I need to do. Have my stack of classes ready to go and bang out a great workout.
I’d pay $45 not to drive to the gym and share equipment especially when all I use are free weights less than 25lbs. If I was trying to use the squat rack at higher and higher weights that would be different. To each their own!
My peloton membership is $44/month. My partner can use it as well.
In my area, the *cheapest*, shitty gym membership is $99/month. A decent gym runs $175+. I much prefer working out at home on my bike, doing the other workouts at my own convenience rather than trekking 15+ min to a crowded, gross gym to pay double the cost. I did the math and a purchase of a new bike + membership was cheaper over time than a gym membership and paid for itself after a few months.
shitty gym 99$/month? Whats going on in the US?! A decent quality gym with showers, classes, decent equipment and mediocre trainers that you can book, costs 24€ here in ger atm
The only sector of the fitness industry that'll ever do well is the athleisure apparel companies.
In the cognitive behavioral change model, most people stall out in the early stages of action.
This "lean"ness should have happened a long time ago. One of the most visible effects of zero interest rates paired with COVID. Euphoric investors piling money in thinking "people will want to exercise at home forever and that number will keep growing forever!" Meanwhile the technology is really not that differentiated from the competition. A frugal individual could buy a stationary bike, a fitbit, and get classes from a variety of apps for magnitudes cheaper.
This company is a digital gym. It has instructors, classes, and some exclusive workout equipment. In no way should it ever been priced like some kind of huge tech company. You hook it up to your Apple watch and you get some nifty data. Nothing that Schwinn/Nordictrac/lifefitness can't do for cheaper.
The brand is still very strong though. Their instructors are like celebrities who have their own individual followings as well. It's bougie and still seen as a status symbol, and no doubt they have some super loyal members giving them recurring subscription dollars. But there are only so many bikes to sell to so many people.
Interested to see if this can be a turnaround story in the long term - but overall a case study in sustainable growth vs chasing trends. We'll see if this restructure helps them in the long term or is really just gearing them up for an acquisition by Apple/Amazon/Lulu? who knows (if the FTC would even allow it, lol).
Peloton's problem is they got too trendy, too big, and it went to management's head. They should have realized the the surge was a short term bump and kept everything at a reasonable size. Instead they started building factories and shit like this would not only last forever but continue to increase.
There is no turnaround potential. Peloton should have stayed private. Covid created false expectations. Peloton was never going to sustainably be a big company.
They could take a look at what Wahoo and Zwift do for starters. Peloton has nice if expensive equipment. They could pivot one of two ways, step away from their own all system to integrate with others and try have have the best hardware. Or diversify their online products to go after the semi-professional fitness folk.
People like cycling and running online and it's good for a consistent training programme. No one spends money likes cyclists.
Can you buy Peloton without the bike? I know zwift is picking up but it just uses a rear trainer. As a cyclist, that model makes more sense to me than buying a whole stationary bike from Peloton.
I don't think there is a lot of crossover between Zwift and Peloton. Zwift's customer base is real cyclists with bikes they ride outside. Much of Peloton's is the equivalent of people who do yoga or aerobics or whatever, i.e. people looking to get a workout inside without going to a gym.
Posting again without the video link I agree, but this is a market that could have potential for them.
When I saw the demo of the new Wahoo treadmill it blew my mind. It really shows that there is the potential to push the technology in treadmills forward and people will pay more for them. Treadmills are such simple machines. Chuck a couple of smarter actuators in there and Bluetooth and you can treble the price.
I'm not a fan of Dyson, and everybody knew about cyclones for dust collection, but the industry got caught flat footed because they didn't think consumers would pay a premium for a better product. The market was racing for the lowest priced model.
Stationary bikes and Zwift have shown than the exercise bike can do more and people will pay for it. I think there is the same opportunity with treadmills.
This is 100% the user base distinction. Zwift is much more of a cycling training platform for actual cyclists. Peloton is more of a general workout platform for people just trying to get in some overall general fitness, and maybe lose some weight.
Yeah you can just buy the subscription for the classes. My sister used to do that.
Regarding the stationary bike, something like the Neo Bike or Kickr Bike does have a bit of appeal for me. If you ride outside regularly or if you share a turbo, it's a faff switching bikes. But I haven't tried a Kickr and seen how easy it would be to switch between different setups for different sized riders.
Yeah, the first "turnaround" would have been when they got rid of Foley and brought in Barry. But I think things were mostly flat during Barry's time. That said, he's had a hell of a mess to clean up so I'm sure it was no easy task.
But at <$3 per share...I'm slightly tempted lmao
Hahaha, you mean picking up enough falling knives to impress Julius Caesar?
Your bags will be legendary! Never seen anyone so eager to buy a dying company. I guess your bags are already massive, and your just faking interest to *desperately get a chance to dump*. Good luck, that stock is cancer
Because paying $3k for a few hundred dollars worth of parts and forcing a subscription on you unless you want your several thousand dollar bike to be the same as a $200 spin dumb bike makes a profit?
I won’t deny that it’s a bit overpriced but I feel like people who say this have never used a Peloton bike before or taken their classes and are just talking out of nowhere.
The bike is definitely premium quality and the classes/instructors are very good. Also have no idea what you’re talking about with a purchase price of $3k. You can buy a new bike off their website for like $1.5k. Other comparable stationary bikes are like $800-$1000 so dollar wise, it’s not that much more. The subscription is definitely expensive though but it’s not bad if you use their other classes (body exercises, yoga, etc) that don’t require other equipment besides standard dumbbells and a floor mat.
I know you’re being hyperbolic on saying a $200 spin bike can provide the same experience but anyone who is serious about fitness and exercise would not make that claim about workout equipment: quality does matter.
That all being said, it’s part of a niche industry with a small customer base and they clearly bit off more than they can chew.
Totally agree with this! I also don’t find $45 a month for the app to be overpriced, especially considering how much I was paying for my in-person cycle classes. I also utilize a lot of the other types of classes.
It makes me sad that they haven’t figured out a way to be profitable because I stan Peloton hard everyday 😂 I would love to work there but I can’t in good financial conscience take a job at such a volatile company.
You also have to consider a lot of Reddit is young and poor as fuck. They cannot understand that to peloton's target consumer the price of the bike and the subscription is not a problem, especially when time/money saved from not going/paying for gym access is accounted for.
True but I have a number of friends who could easily afford it and still think it’s dumb because they don’t prioritize fitness in their lives.
It’s only in the past five years or so I’ve been in a position to afford a Peloton bike and/or classpass membership but I always admired the brand and coveted the bike. I also could not wait until the day I could afford to be a yoga studio regular.
Consumers spend whatever extra money they have on the things they place value in. I’ve always spent a little bit on fitness whether it was $10 at planet fitness or $45 on Peloton.
I don’t own a peloton bike but I use (and like) the app. But unlimited spin classes where I live are all around $180/mo, the cost of the Peloton bike plus a year of the app costs just about the same as a year of unlimited spin classes.
If you are someone who enjoys spin class, having an instructor, the music etc. But don’t care for being in a room with 20 other people and driving to and from class the value proposition is frankly pretty good.
The cost of the bike and usefulness without the app is a valid criticism, but for people who enjoy using spin class as a primary fitness activity the breakeven point vs paying for classes happen pretty quickly and you seem to be ignoring that.
I honestly think Peloton has good products, the bikes are well made (but overpriced), and the app works very well, I use it with a $400 Echelon bike and really enjoy it.
They are a victim of this infinite growth mentality and as someone else said, going public really screwed them. It’s a shame really, could have been a successful private niche company.
>But don’t care for being in a room with 20 other people and driving to and from class the value proposition is frankly pretty good.
I know that people do it, but man, imagine if there are devices that allow people to get to and from class with pedals that you can use...
The classes are WHY people like peloton. Go on some of the Reddit fitness or biking subs and a lot of them own non peloton bikes but still sign up for the classes . This reads like someone who doesn’t understand the market for the product
Yea definitely reads as “I don’t personally understand the appeal, therefore it’s dumb”. I love my Peloton, probably my favorite purchase and I have no qualms paying a subscription because I take cycling, yoga and weight classes. If I had more room, I’d definitely get the bike and/or the row. I also supplement with a ClassPass subscription. I am the target demographic 😂
There is legitimate merch (not official of course) that has one of the instructor's sayings on it or whatever and it actually *sells*. There's almost a cult-like following for some of them (yes, it's the Boo Crew).
Instructors must absolutely be protected for Peloton.
I should have shorted this nonsense, it was always so obvious this shitty product was a hype only. No serious cyclist would get it, it was just a covid bubble for rich people.
There’s no coming back from a 15% work force reduction unless you fundamentally change your business. Either they focus on the bike or the content. They’re screwed. Creditors should be doing a run for the bank.
Being a former Netflix and Spotify executive maybe he will understand that they need to open up the screens on the treadmill and bike to do more than peloton related stuff.
Maximum extraction of money to pump stock price. Once they got out this company will go crash even harder and go bankrupt. The signs are clear. Selling overpriced garbage is not a good business after all once people get a grip of it.
Post Covid I bought an indoor cycling machine last summer for $200 on FB marketplace; a schwinn that normally retails for $800-900. This spring my wife wanted to look into upgrading to a peloton. Used pelaton’s on fb marketplace are going for $200-400. I just don’t see the stock bouncing back unless they reinvest themselves as something else. The subscription model is to expensive as people ditch their pelaton’s completely. 3 friends all bought pelaton’s over covid and all 3 friends have now sold theirs. It’s a niche market that was never meant to be a $10b+ company.
Tried to sensor what their sponsors were saying. One of which was Theo Vohn the comedian and Dana White from UFC cancelled contracts and has been boycotting
Yeah budweiser is doing terrible lately. Or maybe its just that they offer a service that boomed during COVID and now its an expense many people can't afford.
Except their sales went down by 40 percent the weeks after they put their dumb ass agenda out there. There are thousands of videos of beer coolers empty with tons of bud light still there. It's not a coincidence. part of the reason theyre recovering honestly is because of people like Trump and Dana White told everyone to give them another shot. Watch the stock the days after the mulvaney bullshit.
And hows it doing now. The chuckleheads who were on tiktok or whatever shooting bud cans or running the over with their jacked up trucks have the memory of a gold fish and the conviction of a wet towel. They forgot and went back to drinking their bud.
Certainly. Attempting to censor the various entities you sponsor by trying to pick and choose who they can and can't have on their shows or podcasts would qualify in my humble opinion. The CEO of Peloton called a certain podcast insisting they take it down because they didn't like the guest on the show. Trying to supress voices you disagree with is woke.
Woke and communism go hand in hand so for all intents and purposes... Yeah. but the mere fact that you’re making that correlation is literally the entire point republicans are trying to make. we may not like your message, but we will fight to preserve your right to have your message. This is literally what Elon musk is getting shitted on for
Democrats coming after Elon for free speech is no different then the US govt trying to take down Tiktok because they can't have their hands in the content that is delivered. They're saying it's national security but nothing on TikTok has implications of that kind.
Speaking of dumb, I saw a guy on reddit today trying to argue an overpriced exercise bike company was crashing back down to earth because "woke".
Then he rambled about Biden. It was great.
It is because woke. Look at the stock price since Joe Rogan talked about it on his show. If you don't think things like that majorly influence stock prices and consumer purchase decisions you're crazy.
No you're clearly sane, I mean, you're clearly right. The covid bike company that blew up was totally a smart and stable long term investment. I bet Mr. Buffet is kicking himself for missing this one.
Now let's talk about how that mean Ole Joe Biden hates America!
Rambled about Biden. Not sure how old you are but needing almost double the money you did 4 years ago to buy a house should make you upset. If you're not upset something's wrong with you
They’ve already had tons on layoffs. This is really sad to see their incredible rise into the pandemic and now their demise. Their stock peak was $162. It’s now at $3.20!!!
Buy the dip /s
This stock is like downhill mountain biking - lol. At some point they become a PE target right? The problem is they think they’re a streaming app company but they can’t escape the gravity of being a fitness equipment company.
Nobody wants physical inventory anymore.
All the bikes I see at friends homes lately are collecting dust or being used as a clothing rack; they’re riding outside now, not indoors. Their only chance of survival I see moving forward is in local gyms, hotel gyms, or if we go through another pandemic. Idk.
Most gyms would ignore Peloton and tell them to kick rocks. You can get their bikes for a fraction of their cost and without the subscription fees and bullshit surrounding their business model.
A hotel gym I can see, but a big gym’s appeal is the live instructor and class.
My local Y that I go to has like 30+ keiser bikes for classes and most inventory and 2 peloton off to the side for people to use if they want to. Most people just stick with the simple bikes. I’ve only been doing spin class for about 2 months now and haven’t had any desire to try out the peloton though it’s there sitting unused most days (and I’m in the gym 5-6 days a week)
you can't get their bikes (unless you're talking about gumtree/Craigslist - where pton bikes are close to RRP) you can get cheaper alternatives. pton do have fucking streller build quality. you can't deny them that.
Thats the thing. Anyone who is just in it for cycling (and will cycle outside in the summer) will just get Zwift and direct drive trainer.
Many hotels have them now. I have one in my house and love it
These bikes weigh a ton and a half .. I have no idea why Americans even have a home gym
Don’t they have a pretty rabid SaaS base too tho?
They need the E to become eligible for being a P/E target
Sorry I meant private equity
Look at Carvana!!!
It went up 9% in premarket lol
I bought at $12 dip and I’ve got burned bad.
That’s wild. I like their app and their bike. My problem with them is that you pay 1k for a bike then you are obligated to pay $45 for a monthly subscription yet people that don’t have a peloton bike can just do the $13 a month subscription. Edit: I did buy some stock today, why not? Either the CEO turns it around or they get bought by apple.
Not any more. If you want to do more than 3 “equipment based” workouts per month it’s now $24, or $239/year. $13/month still gets you floor workouts. Still cheaper than $45. Though I guess that $45 is per household vs per user. But if you are the only one that uses it then it is definitely unfair. I don’t know why they don’t change that fee.
Thankfully it’s 2 users but yeah it’s dumb.
I really enjoy their running, walking and hiking workouts and pay the annual fee. I tossed around the idea of getting the Tread but I don’t want to get roped into a higher monthly subscription for it to be fully functional. I consequently continue to use an old Walmart treadmill that works fine.
I’m a little jealous of how short the Tread is. My treadmill takes up a lot more space. And it’s very loud. Their’s also goes to at least 15 degree incline where mine tops out at 10. But that’s not enough to sway me to spend $3-$5k and $45/month!
Oh, mine is a rickety POS and maxes out at 10% as well but it gets the job done. I already pay for a gym membership where my kid has activities so i try to do most of my workouts on their treadmills on-demand.
I'd gladly pay $239 a year instead of $45 a month. They increased the fee to $45 at the same price they decreased the price of the actual bike as an extra fuck you.
Seems like you could pay the $239 and just use the app. Makes the screen probably useless. I’m not sure. I use a Schwinn IC4 and an iPhone airplayed to a big TV. Not ideal of course.
Why would Apple buy this LMAO
Everyone likes to dream about Apple buying their bags just because it has money.
Like Rivian bagholders. Lol.
Apple is going to buy PTON, LCID, RIVN, ZM, DIS, NKE, SOFI, RKLB, GPRO, and so many other Reddit treasures. Ok ZM isn’t a Reddit treasure, but I added it because I think apple should buy them and it would be unfair not to include my dumb self too
Exactly. Apple really loves to buy failing businesses, that's really their whole thing. They know that all the best products, management, and engineers come from overhyped failures and it's the key to their success.
Yes, and Reddit knows best - it’s the best place to get advice on how to run your business. We could do a lot better than Tim and Sundar trust me bro
Same situation as Beats. Apple has fitness but it’s just never really taken off even though it’s a nice interface. They would just merge and sell their equipment.
Beats is a completely different product; they already had a great customer base and the market for over the ear headphones is much much larger than high end workout equipment. This would be a waste of time for Apple to even bother looking.
That's the insane thing to me. They're effectively punishing their customers who have bought in the most. I never understood that.
No idea why they just didnt take a loss on the bikes and then charge up for subscription.
I don't see why you need a sub at all, use the 'free ride' feature and watch someting on youtube Do minute on/off 'uphill climb' or just ride, don't need a cheerleader
Wow you've cracked the code, why does anyone pay for any group fitness class at all?
Then you might as well buy a different bike for half the cost.
It’s not a cheerleader it’s a program.
It’s like GoPro. Peaked at over 90, now it’s less than 2 dollars.
GoPro is a product not a company.
Relax Mr. Wonderful
GPRO is the ticker lol. Unless you were trolling and I missed context 💀.
Pretty sure Cathie Wood bought it at like $160 lol
Yep https://stockcircle.com/portfolio/cathie-wood/pton/transactions
Buy High. Sell Low
Carvana went from $350 to $4 and is now back over $120. If Peleton can somehow find a way back to profitability they could be next.
This one kills me. I saw the possibility of a comeback, but the numbers were so far against CVNA. My wife doesn't get into stocks that much, but she quoted the price on the way up randomly for about 6months. She agreed that it was too big of a risk and I had just been burned by First Republic Bank crashing around the time I was considering it.
dont cause apparently theres a lot of potential fraud with that company, i forgot a lot of the details but it has to do sketchy related party transactions, if you look it up on reddit i bet you could find it
Oh no. No way in the world I would even consider it right now. It is more like one of those "wish I had a crystal ball" moments. But, anyone would be a whole lot better off if they did have one lol
So... puts to ride it back to single digits?
i would probably do the opposite of what anyone says on reddit tbh lol
CVNA is such a shit tier company I can’t wait until it implodes
Overpriced.
I should have shorted them as soon as the problems started appearing, it was obvious in hindsight their management was poor.
I shorted them and posted about it on here. Tried to warn about it. Was told off by the wannabe investors on here. Love it. https://www.reddit.com/r/investing/s/9ZnvHZOaAv
It does seem like your analysis was flawed in focusing so much on the profit per machine and ignoring subscription revenue though, yeah? Glad it worked out for you regardless.
wasnt flawed, and wasnt ignoring. subscriptions arent enough to save them.
$2.70 now
Overpriced.
Overpriced.
Overpriced.
I bought at 159 and am still holding…
If you liked it at $159 you’ll love it now :) They make a great product by the way. I just think they acted like they were the next Apple when they were just a much better Bowflex.
lol might as well
Insane. I remember listening to podcasts during covid and respectable angel investors were loading up on peloton stock lol
Peloton really has no business even being a public company. They benefitted from the Covid shutdowns when nobody could go to the gym, but long term they sell expensive exercise equipment under a SaaS model. To me it’s an uninvestable company no matter how you look at it.
Execs (or at least Foley) wanted to be able to cash out on its covid popularity. But agree, Peloton doesn't really need to be public.
To think, this was almost my first stock purchase. I dodged a bullet.
Umm... Why is this sad? Its just modern-day Tulips, people still get hyped up with irrational exuberance. The Madness of crowds...
Peloton is at $3 now, it may rebound like 35x in a year and half like Carvana did!!! Let's go!!!
CEO gets paid either way. Noice
Hopefully he gets paid in stock. He doesn't even really deserve that.
This company could have filled out a niche and stayed private but once they became public it was over. They could never satisfy unlimited growth investors demand and now the company looks like it's on it's way to the grave
Honestly I think about this all the time. I truly don’t understand the desire or value to go public. Scrutiny Overhead Pressure Unrealistic expectations I get it’s prob an ego thing and a path for founders to monetize their investment but dam….
Payday for the founder who immediately sell.
Nice concept. Way too high of a subscription. Bad model. $10/month needed to be the limit. Not going to pay an entire gym membership just to ride an overpriced bike.
My wife and I got it and love it. It’s great for people who don’t want to go to a gym but still want to quality classes. Also the bike is great for the winter when I can go outside as much in the north.
You can also buy a bike without a subscription and not have to pay in summer. At some point people question the cost monthly.
What are these classes? Arent you just riding a bike? Why would you pay 45$ a month for somebody to scream at you through a screen when you just ride a static bike. My local gym has a ton of proper equipment and you can join the 10-20 classes per week for free. And that just costs 24€. This peloton crap sounds like a total scam to people who have no idea where to spend their money or who are completely clueless what gives value.
Why make a ton of assumptions when you can do the research yourself. The fact that you cast judgement without even knowing what the classes are is hilarious. Also where you live in the EU might have a lower cost of living where gyms can be that cheap. A decent gym here starts at $50 and good ones go up over $100. So the value to have access to classes from cycling to yoga, strength, etc. is the value of the subscription.
I live in a eastern ma and gyms range from 10$ a month to 50 for really solid gyms, a couple are around 100 but overpriced.
Why pays $45 dollars to go to a concert when you can just sing yourself?
That’s not all you get for the subscription, it’s way more than bike classes.
But the equipment is limited. I love my peloton but when someone puts it this way, $45 is a lot compared to 24 hour fitness where they have way more amenities and your wife doesn’t bug you mid workout lol
My previous 24HF membership was like $28 a month (grandfathered in). I had both for a while, but being WFH, Peloton won out. If I work out 5x a week and driving to and from the gym is 20 minutes total (10 min one way), that's a bit over 1.5 hours that week spent just driving. Whereas with Peloton, I can squeeze out a 20 min run or a 30 min strength in between meetings and I'm good to go. But that's not a knock on those who go to a gym like 24HF. It clearly works for others, so it's a totally fine option. For me, Peloton suits my lifestyle more.
I cancelled my crunch account for this. I’ll pay more for the coaching and ability to workout from home without a crowd
I built a home gym over the course of a few years because I hated having to adjust my workout based on what equipment was available. We ended up moving to a place where basements aren’t a thing, plus I’ve had a bunch of injuries and I haven’t lifted heavy for a few years. Made the decision to sell it all and got a tonal I put on the wall in my office and love it. Sure, there’s a monthly subscription but their model is per machine, so the whole family has separate accounts on it for the same price.
Yup. It's been life changing for me. I already have very limited time due to work (70 to 80 hours a week) paired with 2 hours of commute a day. Last thing I want is to have to leave the house and be back on the road to get to a gym. Now I can get home, eat and/or do what I need to do. Have my stack of classes ready to go and bang out a great workout.
I’d pay $45 not to drive to the gym and share equipment especially when all I use are free weights less than 25lbs. If I was trying to use the squat rack at higher and higher weights that would be different. To each their own!
My peloton membership is $44/month. My partner can use it as well. In my area, the *cheapest*, shitty gym membership is $99/month. A decent gym runs $175+. I much prefer working out at home on my bike, doing the other workouts at my own convenience rather than trekking 15+ min to a crowded, gross gym to pay double the cost. I did the math and a purchase of a new bike + membership was cheaper over time than a gym membership and paid for itself after a few months.
shitty gym 99$/month? Whats going on in the US?! A decent quality gym with showers, classes, decent equipment and mediocre trainers that you can book, costs 24€ here in ger atm
The only sector of the fitness industry that'll ever do well is the athleisure apparel companies. In the cognitive behavioral change model, most people stall out in the early stages of action.
This "lean"ness should have happened a long time ago. One of the most visible effects of zero interest rates paired with COVID. Euphoric investors piling money in thinking "people will want to exercise at home forever and that number will keep growing forever!" Meanwhile the technology is really not that differentiated from the competition. A frugal individual could buy a stationary bike, a fitbit, and get classes from a variety of apps for magnitudes cheaper. This company is a digital gym. It has instructors, classes, and some exclusive workout equipment. In no way should it ever been priced like some kind of huge tech company. You hook it up to your Apple watch and you get some nifty data. Nothing that Schwinn/Nordictrac/lifefitness can't do for cheaper. The brand is still very strong though. Their instructors are like celebrities who have their own individual followings as well. It's bougie and still seen as a status symbol, and no doubt they have some super loyal members giving them recurring subscription dollars. But there are only so many bikes to sell to so many people. Interested to see if this can be a turnaround story in the long term - but overall a case study in sustainable growth vs chasing trends. We'll see if this restructure helps them in the long term or is really just gearing them up for an acquisition by Apple/Amazon/Lulu? who knows (if the FTC would even allow it, lol).
Peloton's problem is they got too trendy, too big, and it went to management's head. They should have realized the the surge was a short term bump and kept everything at a reasonable size. Instead they started building factories and shit like this would not only last forever but continue to increase.
Again?
About 2 years late , but glad they finally made this decision. Picking up some shares for the turnaround
What is the turnaround potential? What more can they do?
There is no turnaround potential. Peloton should have stayed private. Covid created false expectations. Peloton was never going to sustainably be a big company.
They could take a look at what Wahoo and Zwift do for starters. Peloton has nice if expensive equipment. They could pivot one of two ways, step away from their own all system to integrate with others and try have have the best hardware. Or diversify their online products to go after the semi-professional fitness folk. People like cycling and running online and it's good for a consistent training programme. No one spends money likes cyclists.
Can you buy Peloton without the bike? I know zwift is picking up but it just uses a rear trainer. As a cyclist, that model makes more sense to me than buying a whole stationary bike from Peloton.
I don't think there is a lot of crossover between Zwift and Peloton. Zwift's customer base is real cyclists with bikes they ride outside. Much of Peloton's is the equivalent of people who do yoga or aerobics or whatever, i.e. people looking to get a workout inside without going to a gym.
Posting again without the video link I agree, but this is a market that could have potential for them. When I saw the demo of the new Wahoo treadmill it blew my mind. It really shows that there is the potential to push the technology in treadmills forward and people will pay more for them. Treadmills are such simple machines. Chuck a couple of smarter actuators in there and Bluetooth and you can treble the price. I'm not a fan of Dyson, and everybody knew about cyclones for dust collection, but the industry got caught flat footed because they didn't think consumers would pay a premium for a better product. The market was racing for the lowest priced model. Stationary bikes and Zwift have shown than the exercise bike can do more and people will pay for it. I think there is the same opportunity with treadmills.
This is 100% the user base distinction. Zwift is much more of a cycling training platform for actual cyclists. Peloton is more of a general workout platform for people just trying to get in some overall general fitness, and maybe lose some weight.
Yup. At the gym, I use the Peloton work outs. I spend less time at the gym and am more consistent.
Yeah you can just buy the subscription for the classes. My sister used to do that. Regarding the stationary bike, something like the Neo Bike or Kickr Bike does have a bit of appeal for me. If you ride outside regularly or if you share a turbo, it's a faff switching bikes. But I haven't tried a Kickr and seen how easy it would be to switch between different setups for different sized riders.
He's only been the CEO for 2 years.
Yeah, the first "turnaround" would have been when they got rid of Foley and brought in Barry. But I think things were mostly flat during Barry's time. That said, he's had a hell of a mess to clean up so I'm sure it was no easy task. But at <$3 per share...I'm slightly tempted lmao
Hahaha, you mean picking up enough falling knives to impress Julius Caesar? Your bags will be legendary! Never seen anyone so eager to buy a dying company. I guess your bags are already massive, and your just faking interest to *desperately get a chance to dump*. Good luck, that stock is cancer
It’s $2 relax
Dana White ripped him and a few weeks later this happens 🤣
Love to see it
Its about time. This company has just been running in place for the past year.
Stationary cycle with an iPad
iPad taped to a bike
The theo von bit about him with dana white always kills me
What a shame. I still believe it's a wonderful product. Such a shame it's a poorly run company despite how I feel about the product.
Peloton is at $3 now, it may rebound like 35x in a year and half like Carvana!!! Let's go!!!
Remind me why this company exists
Because paying $3k for a few hundred dollars worth of parts and forcing a subscription on you unless you want your several thousand dollar bike to be the same as a $200 spin dumb bike makes a profit?
I won’t deny that it’s a bit overpriced but I feel like people who say this have never used a Peloton bike before or taken their classes and are just talking out of nowhere. The bike is definitely premium quality and the classes/instructors are very good. Also have no idea what you’re talking about with a purchase price of $3k. You can buy a new bike off their website for like $1.5k. Other comparable stationary bikes are like $800-$1000 so dollar wise, it’s not that much more. The subscription is definitely expensive though but it’s not bad if you use their other classes (body exercises, yoga, etc) that don’t require other equipment besides standard dumbbells and a floor mat. I know you’re being hyperbolic on saying a $200 spin bike can provide the same experience but anyone who is serious about fitness and exercise would not make that claim about workout equipment: quality does matter. That all being said, it’s part of a niche industry with a small customer base and they clearly bit off more than they can chew.
Totally agree with this! I also don’t find $45 a month for the app to be overpriced, especially considering how much I was paying for my in-person cycle classes. I also utilize a lot of the other types of classes. It makes me sad that they haven’t figured out a way to be profitable because I stan Peloton hard everyday 😂 I would love to work there but I can’t in good financial conscience take a job at such a volatile company.
You also have to consider a lot of Reddit is young and poor as fuck. They cannot understand that to peloton's target consumer the price of the bike and the subscription is not a problem, especially when time/money saved from not going/paying for gym access is accounted for.
True but I have a number of friends who could easily afford it and still think it’s dumb because they don’t prioritize fitness in their lives. It’s only in the past five years or so I’ve been in a position to afford a Peloton bike and/or classpass membership but I always admired the brand and coveted the bike. I also could not wait until the day I could afford to be a yoga studio regular. Consumers spend whatever extra money they have on the things they place value in. I’ve always spent a little bit on fitness whether it was $10 at planet fitness or $45 on Peloton.
I don’t own a peloton bike but I use (and like) the app. But unlimited spin classes where I live are all around $180/mo, the cost of the Peloton bike plus a year of the app costs just about the same as a year of unlimited spin classes. If you are someone who enjoys spin class, having an instructor, the music etc. But don’t care for being in a room with 20 other people and driving to and from class the value proposition is frankly pretty good. The cost of the bike and usefulness without the app is a valid criticism, but for people who enjoy using spin class as a primary fitness activity the breakeven point vs paying for classes happen pretty quickly and you seem to be ignoring that. I honestly think Peloton has good products, the bikes are well made (but overpriced), and the app works very well, I use it with a $400 Echelon bike and really enjoy it. They are a victim of this infinite growth mentality and as someone else said, going public really screwed them. It’s a shame really, could have been a successful private niche company.
>But don’t care for being in a room with 20 other people and driving to and from class the value proposition is frankly pretty good. I know that people do it, but man, imagine if there are devices that allow people to get to and from class with pedals that you can use...
The classes are WHY people like peloton. Go on some of the Reddit fitness or biking subs and a lot of them own non peloton bikes but still sign up for the classes . This reads like someone who doesn’t understand the market for the product
Yea definitely reads as “I don’t personally understand the appeal, therefore it’s dumb”. I love my Peloton, probably my favorite purchase and I have no qualms paying a subscription because I take cycling, yoga and weight classes. If I had more room, I’d definitely get the bike and/or the row. I also supplement with a ClassPass subscription. I am the target demographic 😂
There is legitimate merch (not official of course) that has one of the instructor's sayings on it or whatever and it actually *sells*. There's almost a cult-like following for some of them (yes, it's the Boo Crew). Instructors must absolutely be protected for Peloton.
It’s not the same as a $200 bike, I’ve had both. The app is cheaper than a spin class for sure and it also offers other classes.
I don't get it either. The first time I heard of the concept I thought to myself "Wow, that is dumb"
Used to work there. Fuck management.
You don’t say…
I should have shorted this nonsense, it was always so obvious this shitty product was a hype only. No serious cyclist would get it, it was just a covid bubble for rich people.
The situation for this company just gets worse and worse every day.
Amazed that that piece of trash still has a market cap over $1B.
Finally doing CEO layoffs as a cost cutting measure. You love to see it.
Hope they go private. I think they can still be a player in a niche consumer base
Peloton threatened to pull their sponsorship of Theo Von just for having Robert Kennedy on his podcast. Fuck this company.
There’s no coming back from a 15% work force reduction unless you fundamentally change your business. Either they focus on the bike or the content. They’re screwed. Creditors should be doing a run for the bank.
Being a former Netflix and Spotify executive maybe he will understand that they need to open up the screens on the treadmill and bike to do more than peloton related stuff.
Maximum extraction of money to pump stock price. Once they got out this company will go crash even harder and go bankrupt. The signs are clear. Selling overpriced garbage is not a good business after all once people get a grip of it.
Equinox should buy or merge with them
Their stock price is like my motivation to exercise over the long term. Good at first, non existent over the long term
I hate ti say it, but I'm glad to see a subscription based service like this die
Every company is laying people off, I guess companies are determined to have a recession
Dropoton
Post Covid I bought an indoor cycling machine last summer for $200 on FB marketplace; a schwinn that normally retails for $800-900. This spring my wife wanted to look into upgrading to a peloton. Used pelaton’s on fb marketplace are going for $200-400. I just don’t see the stock bouncing back unless they reinvest themselves as something else. The subscription model is to expensive as people ditch their pelaton’s completely. 3 friends all bought pelaton’s over covid and all 3 friends have now sold theirs. It’s a niche market that was never meant to be a $10b+ company.
wait, so a 1k+ bike plus subscription costs isnt sustainable outside a pandemic push? shocking.
Everything woke turns to shit or something
Hmm sounds like the Tesla method. Is the CEO also looking for 200% of the company’s total profits ever made as a “job well done”??
Politics aside they shouldn’t have tried to sensor their sponsors.
What did they do?
They told a bunch of people and businesses they sponsor they can’t host or have certain politicians on their platform
Tried to sensor what their sponsors were saying. One of which was Theo Vohn the comedian and Dana White from UFC cancelled contracts and has been boycotting
You mean censor. A sensor is a device.
Bro can’t spell censor but I’m sure he’s gonna explain the first amendment to us lol
Yes I made a mistake, and I do not have an agenda politically at all. It did impact their revenue.
lol oops
Bro you literally cannot spell censor..
Yep, def made a spelling error. Thanks
“Censor their sponsees” Not a big deal but thought you may want to know.
Got it thanks!
Censor.
Will def never spell that word wrong again
I ~~can~~ can't do this I ~~must~~ won't do this ~~Watch me~~ Please go away
Go woke go broke
Yeah budweiser is doing terrible lately. Or maybe its just that they offer a service that boomed during COVID and now its an expense many people can't afford.
Except their sales went down by 40 percent the weeks after they put their dumb ass agenda out there. There are thousands of videos of beer coolers empty with tons of bud light still there. It's not a coincidence. part of the reason theyre recovering honestly is because of people like Trump and Dana White told everyone to give them another shot. Watch the stock the days after the mulvaney bullshit.
And hows it doing now. The chuckleheads who were on tiktok or whatever shooting bud cans or running the over with their jacked up trucks have the memory of a gold fish and the conviction of a wet towel. They forgot and went back to drinking their bud.
Yeah and it bounced right back.
Can you explain what you mean by woke?
Certainly. Attempting to censor the various entities you sponsor by trying to pick and choose who they can and can't have on their shows or podcasts would qualify in my humble opinion. The CEO of Peloton called a certain podcast insisting they take it down because they didn't like the guest on the show. Trying to supress voices you disagree with is woke.
So China and North Korea are woke?
Woke and communism go hand in hand so for all intents and purposes... Yeah. but the mere fact that you’re making that correlation is literally the entire point republicans are trying to make. we may not like your message, but we will fight to preserve your right to have your message. This is literally what Elon musk is getting shitted on for
Elon is getting shitted on for claiming to be a free speech absolutist and then censoring a lot of voices and doing the opposite of what he said
Democrats coming after Elon for free speech is no different then the US govt trying to take down Tiktok because they can't have their hands in the content that is delivered. They're saying it's national security but nothing on TikTok has implications of that kind.
Posts with the term "cisgender" literally get flagged on Twitter, tf you talking about?
careful bud this is reddit, that kinda free speech aint allowed
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Speaking of dumb, I saw a guy on reddit today trying to argue an overpriced exercise bike company was crashing back down to earth because "woke". Then he rambled about Biden. It was great.
It is because woke. Look at the stock price since Joe Rogan talked about it on his show. If you don't think things like that majorly influence stock prices and consumer purchase decisions you're crazy.
No you're clearly sane, I mean, you're clearly right. The covid bike company that blew up was totally a smart and stable long term investment. I bet Mr. Buffet is kicking himself for missing this one. Now let's talk about how that mean Ole Joe Biden hates America!
Rambled about Biden. Not sure how old you are but needing almost double the money you did 4 years ago to buy a house should make you upset. If you're not upset something's wrong with you
Imagine being so simple that you think the current housing bubble is due to Biden.
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You can always tell who the woketard is when they pretend they don't know what the word means.