Peloton's Revenues Double After First Report Post-IPO
The investing community hasn't exactly been kind to Peloton Interactive (NASDAQ: PTON) since its IPO on Sept. 26. Shares are now trading at more than 20% below their initial offering price, perhaps a surprising situation considering the company reported 110% revenue growth in its 2019 fiscal year (12 months ended June 30, 2019) ahead of the public debut. Investors still aren't biting after sales doubled again during the fiscal 2020 first quarter; shares fell nearly 8% after the report.
There's a good reason for this. The stock is still valued under the assumption that there will be huge upside for some time, and the first sign that momentum is slowing and losses are persisting was rife in Peloton's first report card as a public concern.
But don't be too hard on Peloton. Let's give credit where credit is due. While some may scoff at a stationary bike and treadmill with price tags of $2,245 and $4,295, respectively (not to mention the monthly subscription to workout content on the app), someone out there is ponying up. Q1 2020 revenues for connected fitness products and subscriptions both doubled year over year again.
Source Fool.com
