Peloton Officer Sells 530 Shares

By Douglas A. McIntyre Published Nov 24, 12:30PM EST

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Peloton Officer Sells 530 Shares — © Andrei Stanescu / iStock Editorial via Getty Images

According to an SEC filing, Peloton Chief Content Officer Jennifer Cotter sold 350 shares at $11.01 each. Recently, the stock fell to $9.50. Maybe she plans to buy a Peloton product, but she would have to get a big discount. Or, she may want to put the money aside. According to an article in The Wall Street Journal, Peloton’s deal to sell exercise equipment via Amazon is not as good as it initially seemed.
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The Amazon deal was supposed to widen Peloton’s distribution footprint substantially. But it did not help profitability. The author wrote,” …Amazon’s help won’t come cheap. The deal is a wholesale relationship, which means Amazon buys the bikes from Peloton then sells them at a markup.” The Journal also points out the Amazon deal could cut inventory that needs cutting.

The news is another milestone on the path of poor decisions by CEO Barry McCarthy, who has been at the company less than a year. He can sell equipment at a loss and make it up on volume. Even first-year business students know that does not work.

Investors have already voted against McCarthy’s tenure and his strategic decisions. Shares are off 72%, while the overall market has dropped 16%. There is nothing in Peloton’s official announcements about earnings that would cause investors to move in any direction other than out.

In the most recently reported quarter, revenue fell 23% to $617 million. Peloton posted a net loss of $408 million.
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Why did Cotter sell those shares? A gym membership.

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.