It’s been a rough week for a number of major-name stocks. (Here’s taking a look at Zoom and AMC.) However, the trend remained on Thursday–this time , with the maker of indoor bikes Peloton Interactive. The stock has been falling in pre-market trading, after the company announced disappointing results for Q4 2022.
- Didn’t Peloton share prices rise in the past few days? Yes, it did. In actual, Peloton stock (ticker PTON) was up more than 20% on the day to $13.48 per share, on the back of the announcement that it would begin offering its bicycles and other accessories on Amazon.
- What’s the matter now? Despite the surge in the stock of Peloton yesterday, as at the time of writing, PTON is trading down by more than 16 percent up to $11.25 per share as a result of the company reporting its sixth quarter in a row of losses. In this instance, Peloton suffered losses of $1.2 billion in the fourth quarter of its.
- How big are peloton’s loss? Pretty bad, and they’re growing. According to CNBC informs the previous year, during the same period Peloton suffered losses of $1.05 each share which is around $313 million total. However, the same quarter of this year was a time when Peloton loss $3.68 each share which is around $1.24 billion.
- What’s the reason Peloton experiencing such losses? For a number of reasons. Reduced consumption and rising prices are only two. The main factor that is that has a direct impact on Peloton is the decline in customers who use its equipment and services. Peloton use increased in the initial days of the pandemic , when lockdowns were in effect. However, there is no reason to remain inside on the bike that is connected instead of going out and ride around the world?
- What is Peloton tell us about it? In a letter addressed to shareholders, Peloton CEO Barry McCarthy declared that Peloton is similar to a cargo vessel “In the high school years, I had the privilege of spending three summer months on a cargo vessel. When I got home at midnight on my second journey I fell asleep and an alarm set for the general quarters awakened me up. My station for reporting was on the bridge. Fear can be a powerful motivator. I wore a dress while running. The 720-foot vessel was speeding at 27 knots as well as the helm a hard to get into. The ship was healing rapidly towards the starboard side, as the steel vessel was shaking. The captain tried to make the ship turn around but a ship this large, moving that fast requires thousands of miles in order to turn. We saved two men’s lives the night before. They had been lost at sea in the Mediterranean for several days. A fortunate, happy ending. Peloton is like the cargo ship. We’ve set off the alarm for the general quarters. Everyone is at their place. We are constantly adding new data to develop our go-to-market strategy to bring growth back. What time will the ship react is the issue. Our aim is FY23.”