Peloton Shares Plunge After $757M Lost in Q1

    Photo: Michael Loccisano/Getty Images [via The Wall Street Journal]

    The Facts

    • Shares of in-home exercise equipment maker Peloton Interactive Inc. dropped dramatically after the company released disappointing sales numbers for the first quarter of 2022.

    • The earnings call was the first under new CEO Barry McCarthy, who took over in Feb. in an effort to turn around the company's fortunes amidst supply chain issues and waning demand for its connected bikes and subscription workout plans.


    The Spin

    Narrative A

    The pandemic bubble has officially burst, and Peloton has joined the ranks of Zoom, Netflix, and all of the other stay-at-home plays that thrived during the lockdown. All were bid up during the lockdown and all were bound to bust with the reopening.

    Narrative B

    Peloton is in the early stages of a radical transformation from a "bike company" with its early focus on hardware and devices to a "connected fitness" platform with 100M global subscribers, and McCarthy is just the guy to lead it. Turnarounds are hard work, but the company will bounce back.

    Nerd narrative

    There's a 12% chance that Peloton will file for bankruptcy protection before 2023, according to the Metaculus prediction community.


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