OT-ish Peloton temporarily halts production of bikes, treadmills

[AngryScientist]

Declining hardware sales are just the leading edge of the slump too; they're really going to feel it when all of those people who they hooked during the pandemic start cancelling their monthly donations.

[Clean39T]

Originally Posted by Hellgate

It's not a pump and dump, that's the point.

Fair enough. Call it like you see it, I’ll do the same.

[retrofit]

Originally Posted by Elefantino

So buying Peloton stock a year ago at $158 probably wasn't a good idea.

Nope, but selling when stock was around $110 sure was...

Peloton execs dumped stock ahead of production pause

Ahead of the crash, Peloton executives were selling off their stock in the company, CNBC Business reports.
Between John Foley, the company’s CEO and co-founder, and several other board members and company insiders cashed out on $500 million in stock

[Hellgate]

Originally Posted by Clean39T

Fair enough. Call it like you see it, I’ll do the same.

Just remember, buy low, sell high.

[Spaghetti Legs]

Originally Posted by retrofit

Nope, but selling when stock was around $110 sure was...

Peloton execs dumped stock ahead of production pause

Looking at the root article from NBC news it looks like the sales were over a period of time starting last fall, so unlikely a dump right before the price drop. These are usually scheduled sales but I think they are often tied to stock price points and I’m sure subject to some manipulation. This is a prime example, regardless, of the obscenity of American corporate culture. A quick look at the 2020 and 21 Peloton financial numbers shows this company has yet to turn a profit, yet it’s executives have cashed out a total of 12.5% of the company’s net 2021 revenue ($4b). Good work if you can get it.

[pbarry]

The problem with most stationary exercise equipment is it’s one purchase for life, or maybe if you’re really into the activity, one or two upgrades in 20 years. 75% probably only used for a few months. The subscriptions are somewhat of a game changer over, say, traditional rollers, but still, nowhere near the cash flow of the original hardware sales.

[Clean39T]

Originally Posted by Hellgate

Just remember, buy low, sell high.

And get the jump on the rest of the market.

[markie]

I thought the decline in sales was because “they killed” Mr Big.

https://www.nytimes.com/2021/12/15/s...sale-satc.html

Just me?

[Likes2ridefar]

Originally Posted by Hellgate

Just remember, buy low, sell high.

“Executives and insiders at the luxury home athletic equipment maker Peloton have cashed out over the last year to the tune of hundreds of millions of dollars, benefiting massively from the unexpected financial benefits of the COVID-19 pandemic. Now, as the company’s share price is in free fall, workers appear likely to bear the brunt of leadership’s bad decisions.”

[peanutgallery]

Thinking something similar will eventually zap Vail Resorts, a publicly traded company can only hinge so much growth on selling season passes to do something difficult before things go pear shaped. Skiing is hard and so is riding a bike

50 ski resorts can easily burn through cash reserves if there's a blip

Their latest aquisition, look for the person on the struggle bus

https://mobile.twitter.com/7springsp...69156115288065

[texbike]

As so many have expressed, this one was easy to see. A combination of increased competition (you can buy a competitive product at Lowes for a fraction of the cost of an actual Peleton as an example) and decreasing overall demand for a variety of reasons (boredom with them for a majority of owners?).

In the next year or so, I think we're going to start seeing a lot of similar, lightly-used sporting/fitness goods hitting the market including bikes, inflatable paddle-boards (VERY popular here in Austin), skates, scooters, etc. as their owners move onto the next thing and tire of them taking up space. I think it's going to create an oversupply/glut of fitness goods in the market that the various, related industries will need to marketeer themselves out of. What will be the next niche bike concept to be overmarketed? Ice ebikes? Water bikes? I personally wouldn't want to be long on any fitness-oriented companies for the next year or two.

Texbike

[texbike]

Originally Posted by peanutgallery

Thinking something similar will eventually zap Vail Resorts, a publicly traded company can only hinge so much growth on selling season passes to do something difficult before things go pear shaped. Skiing is hard and so is riding a bike

50 ski resorts can easily burn through cash reserves if there's a blip

Their latest aquisition, look for the person on the struggle bus

https://mobile.twitter.com/7springsp...69156115288065

Lol! That video is funny!

I'm not a fan of Vail Resorts AT ALL. They've taken a moderately expensive sport and made it stupid expensive if you want to ski at any of the mountains they own.

Ugh.

Texbike

[Plum Hill]

Originally Posted by paulh

Probably as good a chance as the FoxCONn factory in Wisconsin. Promised to be the Eighth Wonder of the World!

My immediate thought after reading post #23.

If sales drop, how long before support starts lagging?
Same with Wahoo, TACX, etc.

[peanutgallery]

I sold that boot like a week ago

The hate for Vail when they buy you local is high. They would rather have you buy a $20 burger in Colorado. They're purchasing markets in the Mid-Atlantic basically

What I've noticed this year is many customers are mentioning that now that they've done the Vail Resorts thing 3 years in a row, is they would like to experience an iKon resort. Sad trombones... hopefully

Originally Posted by texbike

Lol! That video is funny!

I'm not a fan of Vail Resorts AT ALL. They've taken a moderately expensive sport and made it stupid expensive if you want to ski at any of the mountains they own.

Ugh.

Texbike

[mtechnica]

Originally Posted by Hellgate

Oh come on. Ray Charles could see this coming.

Originally Posted by texbike

As so many have expressed, this one was easy to see.

Texbike

Wow you guys must have made out like bandits with all of your short positions since you saw this coming so easily.