Why Peloton Stock Surged to Its Highest Price Since May Today
Shares of connected-fitness company Peloton Interactive (NASDAQ: PTON) surged on Wednesday after the company announced financial results for the second quarter of fiscal 2023. In short, the company's business is more resilient than some gave it credit for, and some metrics are improving. And that's why it jumped to its highest price since May 2022. As of 11 a.m. ET, Peloton stock was up 18%.
Peloton CEO Barry McCarthy struck an optimistic tone, saying, "If you've been wondering whether or not Peloton can make an epic comeback, this quarter's results show the changes we're making are working." Specifically, McCarthy was referring to improvements on the company's cash-flow situation.
McCarthy took over at Peloton about one year ago. And in his first three quarters as CEO, the company reported quarterly negative free cash flow (FCF) of $747 million, $412 million, and $246 million. In Q2, Peloton had negative FCF of "just" $94 million, but this included some one-time expenses. Without those, Peloton would have been cash-flow positive.
Source Fool.com
