Peloton Interactive Inc. Fixed bicycles are on display at the company’s showroom on New York, USA, Wednesday, December 18, 2019 on Madison Street.
Jeenah Moon | Bloomberg | Getty Images
At least three Wall Street investment companies have traded lower following Peloton’s tragic first quarter financial report on Thursday.
The company – and the stock price – showed impressive growth a year ago due to the epidemic of home stays, but the pace is slowing and many consumers are returning to the gym. Planet FitnessFor example, as stated on Thursday, membership rates They are about to return to the pre-epidemic stage.. That collection is at an all-time high on news.
Peloton CEO John Foley said at the company’s revenue conference:
Foley added that in recent months, Peloton has seen a decline in traffic to its website. He said consumers visited the brick and mortar shops and found it very difficult.
Putting more pressure on Peloton’s profits, the company cut its first bicycle price by 20 percent in August. Executives said Thursday that the offer has helped speed up bicycle sales, but that means fewer people are choosing to buy the more expensive bike +.
Considering the revised Fiscal 2022 vision, Peloton said it was looking to make “material improvements” to its cost structure, which would include “significant adjustments” to employment plans.
Truist Securities analysts say: “We believe it will take a few quarters of a year for Peloton to get back on its feet, with clear economic upheavals and logistics costs coming up.
Trust on Friday downgraded its holdings and lowered its target price on Peloton shares from $ 120 to $ 68. The stock closed at $ 86.06 on Thursday, already down 43% for the year.
Meanwhile, Credit Switzerland reduced its target price from $ 148 to $ 112.
Credit Swiss analysts wrote to clients: “Interest is declining on all fronts. It makes us wonder when we should return to the capital we have invested in.”
Peloton expects to have between 3.35 million and 3.45 million connected subscribers by the end of June, down from 3.63 million previously planned.
– CNBC Michael Bloom. Contributed to this report.
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