Peloton shares climb as co-founder abruptly resigns
Peloton has lost its co-founder and chairman as the business refocuses its operations.
(Video Transcript)
A turbulent few months
Peloton Interactive Inc co-founder and chairman, John Foley, abruptly resigned from the company late last night.
The connected fitness business has seen a lot of disturbance among its board recently. Two executives have also gone at the same time, this biggest shakeup since Barry McCarthy arrived as chief executive back in February.
It's been a turbulent few months in which Peloton announced it was cutting around 10% of its workforce, about 800 jobs, ending in-house production, replacing its finance chief and partnering with Amazon to sell bikes and gear independently of its own website.
Peloton technical analysis
You can see here on this chart it rose pre-COVID from when it was down at 17.86, 857% all the way up this record high at $171 a share.
It originally came to the market at $29, but since that high point, we've seen profit warnings, concerns about the sales outlook, changes in staff and a big reduction in staff numbers, taking us all the way down to just $8 a share.
Now since then it has risen, it's currently trading at 1094, but Foley had already stepped down as chief executive in February, telling investors that he'd made missteps by growing the business too rapidly during the first year of COVID, where we saw this really big rise in its shares.
Since then, the company has hit $50 billion of market value, more than quadrupling its initial public market valuation in the late 2019's. However, this story has become one of failure and as a result of that we've now got a company which is trying to regroup itself.
It is up half of 1% today after gaining a small amount of trade last night all-sessions on IG's platform. We're awaiting the opening of the New York Stock Exchange in a short while.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
