Peloton Interactive Is Running Off the Rails
The wheels are quickly coming off of Peloton Interactive (NASDAQ: PTON) in a reopened economy as the thought of exercising at home has lost most of its appeal. Revenues are plunging, losses are widening, and the connected fitness equipment maker was forced to take out a five-year $750 million loan because it is "thinly capitalized."
Peloton has been forced to cut prices on its equipment, introduce new low-cost devices, but also raise its subscription prices in a bid to lure in more customers. The cloudy approach is not working.
The number of connected fitness subscribers will be 2.98 million by the end of the fiscal year, a 28% increase over last year, but below analyst expectations of 3.01 million subscriptions.
Source Fool.com
