Published - Feb 7, 2022 @ 2:31 PM (EET)
Shares of Peloton Interactive Inc (NASDAQ:PTON). rose as much as 43% in extended trading Friday.
The surge follows a report from the Wall Street Journal, stating that the home fitness company is attracting acquisition interest from potential suitors, including Amazon, citing people familiar with the subject.
During the COVID-19 pandemic boom, Peloton Interactive Inc. was seen as the future and darling of home workouts as people during lockdowns turned to fitness and online classes for exercise. Since then, however, growth has stalled, with shares falling over 80% as the gradual easing of pandemic restrictions is witnessing people returning to gyms.
Not only has Peloton suffered from a deceleration in pandemic-fueled trends, but its management has also failed to execute properly on its pipeline, with lack of demand fears permeating investors for months. Last month, activist investor Blackwells Capital LLC issued a letter demanding the company fire co-founder and CEO John Foley and pursue a sale.
No other potential acquirers were named, but the report suggested others, including Nike. Amazon said it doesn't comment on rumors or speculation, and Peloton did not immediately respond to a request for comment.
The link-up would give Amazon or another party access to its millions of well-heeled users and their data and a significant boost in the health and wellness technology market.
Existing businesses of Amazon, such as the company's fleet-and-logistics arm, could help the bike company address supply-chain issues. According to the report, Peloton can also bundle subscriptions with Amazon Prime, reducing shipping costs and streaming services while getting more from annual fees.
Based on Friday's official market close of $24.60 a share - below its September 2019 initial public offering price of $29 - Peloton is worth just over $8 billion.
WHO IS PELOTON
Peloton Interactive Inc. is a New York-based exercise equipment and media company founded in 2012. It provides interactive fitness products like the Peloton Bike and the Peloton Tread for live and on-demand classes.
Word on The Street suggests a Moderate Buy analysts consensus rating with a $42.28 average price target, an upside potential of 71.4% from current levels.
To invest in Peloton stock visit MEXEM.
