When fitness product maker Peloton Interactive Inc. (NASDAQ: PTON) released its quarterly earnings, they could not have been worse. Barry McCarthy, the chief executive and president, said the results “will be a function of where you sit.” He should have said, “Will the last one to leave please turn out the lights.”
[in-text-ad]
Peloton managed to lose $1.2 billion, an amazing feat for what was among Wall Street’s darlings. Management successfully has pounded into the ground. Revenue dropped to $679 million from $937 million. Consumers have lost interest in its overly expensive bikes and treadmills that allow people to watch trainers on a screen. It may be this was popular when people were trapped in their homes during the COVID-19 pandemic. As they returned to their gyms, they left their Pelotons to sit on the junk heap.
Peloton cut a deal to sell its products on Amazon, and Wall Street cheered. However, success will be based on demand, no matter where the machines are sold. The Amazon deal is not likely to be helpful.
McCarthy said the company’s cash management situation has improved. That only matters if the cash problem markedly improves. Based on Peloton’s struggles, that is unlikely.
McCarthy made the point that he worked on a cargo ship when he was in high school. He then drew a comparison between running these ships and running a bike company. McCarthy wrote that two men lost at sea were saved during his time as a sailor. He added “Peloton is like that cargo ship. We’ve sounded the alarm for general quarters. Everyone’s at their station.”
Presumably, everyone was at their station as the Titanic sank. It did not matter.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.