Peloton Interactive (PTON) is set to report its fourth-quarter fiscal 2024 results on August 22. Despite facing challenges like declining Connected Fitness Products revenues and increased churn in subscriptions, Peloton is aiming to mitigate these issues through growth initiatives and strategic partnerships. While analysts anticipate a revenue decline, cost-cutting efforts might narrow the loss per share year-over-year.
Prime Day is the perfect time to snag deals on fitness equipment, and we’ve rounded up the best offers on Peloton, Apple Watch, NordicTrack, and more. From rowing machines and treadmills to smartwatches and exercise earbuds, find the perfect equipment to upgrade your home gym.
Prime Day offers a $100 discount on the Peloton Guide, a camera-based fitness system that provides AI-powered personal training and form correction. This deal is available to Prime members and is a great opportunity to get fit from the comfort of your home.
Peloton faces market challenges as Barry McCarthy steps down as CEO and the company announces layoffs. Financial expert Simeon Siegel from BMO Capital Markets provides insights on the impact of these developments on Peloton’s stock performance.
Apple shares rose ahead of its second-quarter earnings report, while Peloton plunged after announcing CEO Barry McCarthy’s departure and layoffs. Qualcomm surged after posting strong earnings, as did Wayfair and Carvana following better-than-expected financial results. Cigna stock declined despite exceeding estimates but reaffirming annual guidance, while Moderna climbed after reporting a smaller loss and reiterating its outlook. DoorDash fell on a wider-than-expected quarterly loss, and Etsy plummeted after missing earnings targets. Zillow slid due to weak current-quarter guidance, and eBay pulled back on lower-than-estimated revenue projections. Shake Shack rose on positive earnings, while Qorvo declined after providing weaker guidance.
Peloton announced Thursday that CEO Barry McCarthy will be stepping down and the company will lay off 15% of its staff, approximately 400 employees. McCarthy, a former Spotify and Netflix executive, joined Peloton in February 2022 and has spent the last two years restructuring the business. During his tenure, he implemented mass layoffs, closed showrooms, and focused on growing the company’s app membership. Despite these efforts, Peloton has struggled to achieve sustained growth and profitability. The company has not reported a net profit since December 2020 and has over $1 billion in debt. In a letter to staff, McCarthy said the layoffs were necessary to achieve sustainable free cash flow. The company also announced a broad restructuring plan, including cost cuts of more than $200 million by the end of fiscal 2025. Karen Boone, Peloton’s chairperson, and director Chris Bruzzo will serve as interim co-CEOs while the company searches for a permanent CEO.
