Peloton Interactive, Inc. (PTON) stock price closed at $29.75 in the latest trading session of Monday, by a + 20.93% surge. Peloton is among the worst performers amid slowing demand in the past two quarters. In response, its shares have plunged more than 80% from January 2021 due to the slow deceleration of pandemic restriction. It is the total opposite purview from the early days of the pandemic.
The market value of the company dropped from its peak of $52 billion to just over $8 billion, based on Friday’s official market close of $24.60
Activist investor Blackwells Capital is urging Peloton to sell itself, as well in last month issued a letter demanding Peloton’s board for the CEO’s resignation for allegedly setting up deals that set high costs and maintained excessive inventories.
Plus, Blackwells also criticized Foley (CEO) for hiring his wife as an executive. It is unknown whether Peloton’s board is interested in selling the company.
Companies interest and Analyst’s point of view for PTON
The companies were looking at Peloton, whether for acquisitions, investments, or any other type of link-up, including some big names in technology and fitness. Amazon.com Inc. has spoken to advisers about a possible deal. Analysts speculate that Apple Inc. can hide as a potential buyer. Nike Inc. is also considering a separate bid for Peloton.
Peloton’s report will receive additional attention, affirming Amazon’s desired interest in the fitness equipment and subscription company, which indicates that the peloton may be ready for sale. In a short note Friday, Bloomberg Intelligence senior analysts said Peloton would
“Only serve as a distraction” for Amazon — while offering few synergies for a company focused on the cloud and logistics. An athleisure company, they said, “would be a better fit.”
“While Peloton is already among the at-home fitness leaders, greater product variety could help it recoup demand.”
“The deal better be worth the headache for the company because they’re going to be scrutinized on whatever they buy,”
According to Motley Fool, Peloton Interactive, Inc. (PTON), which provides connected interactive fitness products with a touchscreen that streams live and on-demand, is among the ten stocks to sell. The firm managed to avoid the recent price drop by selling all its shares in the company during September 2021. It touched the highest price of $162 on December 21, 2020. In a report issued on January 21, the analyst consensus on Peloton Interactive is a Moderate Buy with an average price target of $42.28, representing a 71.4% upside.