How to buy, sell and short Peloton shares

How to buy or invest in Peloton shares

Investing in Peloton (PTON) means that you’ll be taking direct ownership of the shares, while buying Peloton means that you’ll be trading on the Peloton share price with financial derivatives like CFDs.

When you invest in Peloton shares, you’ll take direct ownership of them. However before you get started, you need to know that there are two different classes of Peloton shares. Class A shares are for public shareholders, and they grant one vote per share. Class B shares are for company insiders and employees, and they grant 20 votes per share.

As a result, when you invest in Peloton as a public shareholder, you’ll be investing in class A shares and you’ll gain one voting right per share.

If you’d rather trade on the Peloton share price, you won’t receive voting rights but you will be eligible to receive different tax benefits depending on whether you choose to trade CFDs.

You can see a screenshot from our trading platform below. It shows the Peloton share price from 19 January 2020 to 20 May 2020.

How much would it cost to invest in Peloton?

Peloton is an American company, which means that you’ll benefit from our best commission on US shares when you invest in Peloton with us. Our best commission on US shares is available to clients who opened three or more positions on their share trading account in the previous calendar month.

If you’d rather trade on the value of Peloton, you can do so with CFDs. With these products, you’ll be able to:

• Get full exposure with a 20%-25% deposit on almost all of our tier one shares¹
• Offset your losses against profits for tax purposes with CFDs²

How to sell and short Peloton shares

Selling Peloton shares is for investors who are looking to reduce or completely exit their position; shorting is for traders who have a negative outlook for Peloton.

When you sell Peloton shares to realise your Peloton gains or cut losses, you’ll be able to take the capital from the sale and reinvest it in other assets to diversify your portfolio.

When you short Peloton shares, you’ll be able to profit directly from the share price falling. Shorting is for traders, and it is made possible through derivatives like CFDs.

Peloton live share price

Peloton shares: the basics

Peloton is listed on the Nasdaq 100 (US Tech 100 on our platform) – a US stock exchange for non-financial US companies. It trades under the PTON ticker. It is not a constituent of any stock indices, but that could change in the coming years if the shares increase in value and the company expands into other territories than the US more aggressively.

Peloton: a brief history

Peloton was founded in 2012 by Graham Stanton, John Foley, Tom Cortese, Hisao Kushi and Yony Feng – offering online exercise classes with self-designed equipment including bikes and treadmills.

Peloton in-house gym classes were also available from the company’s founding – but only in the US. That said, the company is looking to expand this side of its offering, and additional in-house classes had already been set up in Canada, the UK and Germany at the time of writing.

The availability of in-house classes aside, anyone around the world can access Peloton online classes providing that they already have a Peloton bike or treadmill and company account.

The company went through an initial growth period, before listing in September 2019. Peloton came $500 million dollars under its target valuation after the first day of trading – achieving $7.7 billion.

After experiencing an overall decline from December 2019 to March 2020, the company’s stock was boosted by the coronavirus pandemic. This was because more people bought at-home exercise equipment after countries around the world mandated the closure of gyms and other public exercise spaces.

The screengrab below – taken from our trading platform – shows the Peloton share price performance from 10 December 2019 to 20 May 2020. We’ve highlighted the first European nationwide lockdown – which was in Italy on 8 March.

Other countries and federal states around the world soon followed suit, notably Spain on 14 March, the US state of California on 19 March, the US state of New York on 20 March, and Germany and the UK on 23 March.

Peloton key personnel

There are eight people on the board of Peloton:

As well as the board, Peloton has a leadership team of 59 people. This includes the CEO, chief technology officer, head of music, creative director, senior vice president of hardware, vice president of supply chain and vice president of membership.

Peloton business model

Peloton’s business model is based on its home use fitness equipment and online training sessions. Peloton generates revenue through sales of its fitness equipment – including exercise bikes, treadmills, headphones and heart rate monitors.

Peloton also sells subscriptions for online training sessions – where customers can participate in live classes with trained instructors. These classes are also available for download at any time, so users don’t have to wait for an online class to go live in order to get their workout.

The cost of the basic package for a Peloton bike – containing the bike, a one year warranty and home delivery – was £1990 at the time of writing. Subscription services are available separately.

Peloton share price analysis: how to analyse the Peloton share price

You can use technical analysis and fundamental analysis to assess the Peloton share price. Both of these forms of analysis can be helpful when determining if the shares are currently overbought or oversold, or if they are overvalued or undervalued.

Overbought and oversold areas can be identified with technical indicators such as support and resistance levels. Overbought shares might present a potential short opportunity. Oversold areas can present a potential long opportunity to buy.

Overvalued and undervalued shares are often identified with fundamental analysis of the company and economy as a whole. Shares might be thought of as overvalued if their price exceeds the demonstrated company performance, and they’ll be undervalued if their share price is currently below the demonstrated company performance.

Footnotes

¹Deposits on leveraged trades are 20%-25% for 99.14% of tier one shares (correct as of 1 June 2020). For more information, view our share trading margin rates